Financial Regulatory Reform Passed by Conference Committee

Anti Predatory Provisions:

  • A new minimum underwriting standard would be enforced that will make lenders verify that borrowers can repay the loan.
  • Ban payments to mortgage originators who steer borrowers into high-priced loans.
  • Protection against prepayment penalties and abusive loan fees.

Data Enhancements:

  • Data enhancements on HMDA (Home Mortgage Disclosure Data) which include loan terms and conditions & age of borrower.
  • Data on the gender and race of the small business borrower so that we know whether woman and minority-owned small business are receiving loans and can start or expand their businesses.
  • A default and foreclosure database that would be an early warning system enabling stakeholders to take action if the data shows a spike in foreclosures.
  • A database of individual loan records in the Home Affordable Modification Program (HAMP) program. This will increase the accountability of the industry for modifying distressed loans.

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