As foreclosures skyrocket next year (foreclosures are a lagging economic indicator) we’ll see tons of legislation across the U.S. targeting the mortgage industry.
This article on Colorado foreclosures gives a good list of the kinds of legislation we might see.
“I think it’s a severe problem that calls for regulatory action as well as legislation,” said Peter Groff, D-Denver, president pro tem of the Colorado Senate. “I think you’ll see some comprehensive legislation coming out of the Senate next year.”
– Restrict risky loan features
– Clean up deceptive, confusing loan advertisements
– Make appraisers more independent
– Crack down on mortgage fraud, predatory lenders
– License and train mortgage brokers
– Educate consumers
– Encourage self-policing in the mortgage industry
– Assist borrowers before they end up in foreclosure