This Act which has been approved by the House of Representatives responds to the sub prime crisis and the predatory lending techniques used by lenders. The Act will impose stricter requirements on lenders including:
-More stringent investigation by the lenders to ensure that the borrowers can repay the loan;This could bring long needed help to homeowners, but then again it could be just as ineffective as HAMP and HARP have been. We will just have to wait and see. For a summary of the Act go to www.house.gov/apps/list/press/financialsvcs_dem/summary_of_1728.pdf.
-Prohibition of predatory lending techniques;
-Liability on participants in the secondary mortgages markets;
-Holds creditors responsible for the loans they originate;
-Additional disclosures must be given to the borrowers;
