Raleigh Residential Real Estate – Bill stalled in the Senate may help the Raleigh Housing Market

Raleigh Residential Real Estate – Bill stalled in the Senate may help the Raleigh Housing Market

There is a bill moving through Congress that will help the ailing mortgage industry and the housing market – including the Raleigh, NC housing market. It will also correct predatory lending practices that help cause the subprime mortgage meltdown that occurred this past summer.

The House of Representatives passed H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act of 2007, on Nov. 15 in an effort to address the turbulence in the mortgage market.

Under the new law, lenders would require borrowers to have a reasonable ability to pay back a loan, bring mortgage brokers under a nationwide licensing registry, expand some limits on high-cost mortgages and establish some legal liability standards for the mortgage industry.

The bill, which seeks to curb abusive mortgage lending practices, would require lenders to make sure borrowers have a reasonable ability to pay back a loan, bring mortgage brokers under a nationwide licensing registry, expand some limits on high-cost mortgages and establish some legal liability standards.

The bill would also establish federal standards for appraisers and require certain borrowers to open escrow accounts along with their mortgages to protect against unexpected taxes and insurance premiums.

The bill has not passed the Senate

I believe the bill or some form of it is a good idea. If you would like to support the passage of the bill, I recommend you read the bill for yourself before contacting your Senator.

You can read the proposed bill at FHA Modernization Act of 2007
 
If you need to know how to contact your Senator, click here: Senators of the 110th Congress