The faulty mortgage practices which damaged the economy and financial markets round the globe will now face tighter restrictions. H.R. 1728, Mortgage Reform and Anti-Predatory Lending Act would take steps to make sure that the borrowers avoid mortgages which are costly so that they can pay back their creditors and receive better disclosures.
Most of the Consumer Advocates are happy with this new Act as they feel that the stricter rules are necessary to protect consumers as well as the economy. This legislation will, henceforth, see to it that the consumers have the ability to repay mortgages and prohibit reimbursement for indulging consumers into risky loans
But there are some people who have certain concerns about this Act. Some people think that this Act will limit borrowers' access to loans and increase prices. However, it is noted that the credit risk retention requirement will help the lenders in making safe-harbor loans which is less risky for consumers.
Some of the experts are of the opinion that the bill can be very helpful provided it allows enough room for state laws to prevent abuses and limit preemption by federal standards.