Today, Thursday November 15, 2007, the House of the U.S. Congress passed a bill aimed at mortgage lenders, that requires additional safeguards in the home loan process to prevent more mortgage loan crisis.

In a reaction to the huge number of foreclosures on home loans, the House passed legislation to put the hammer down on home mortgage lenders. The main idea of the bill is to make lenders responsible for borrowers who are unable to repay their home loans because the lender did not fully qualify them. The bill also wants mandatory licensing for lenders and to issue fines to lenders for leading unsuspecting borrowers to higher-risk subprime mortgage loans.

H.R. 3519 known as “Mortgage Reform and Anti-Predatory Lending Act of 2007” , sets standards and more guidelines for the mortgage loan industry in order to prevent more homeowners from falling into the foreclosure abyss.

It is expected that more than 2 million mortgage rates will adjust up in 2008, possibly triggering an avalanche of foreclosures in effect crippling the home loan and other financial markets further.

Of course, there is always some form of opposition on the political side of this bill. Some of the Republicans are saying that this bill will make it harder for people to refinance their mortgage loans with all of these requirements of mortgage lenders. In effect, under this legislation, the home owner seeking to refinance their home loan, may not qualify for a new loan and this will also fuel the foreclosure crisis! Below are a few things the legislation will provide. Continue reading House Bill Lands On Lenders