The Ney-Kanjorski bill, which would establish a national predatory lending standard, would also make it illegal to "steer" borrowers into higher-cost loans and require lenders to create escrow accounts on most subprime loans.The bill introduced by Reps. Bob Ney, R-Ohio, and Paul Kanjorski, D-Pa., deals mostly with tightening regulation of high-cost subprime loans under the Home Ownership and Equity Protection Act. However, the bill also requires lenders to establish escrow accounts for taxes and insurance at closing on most nonprime loans. It also prohibits lenders and mortgage brokers from steering borrowers who qualify for less expensive loans into more expensive loans. This is similar to a steering provision in a California predatory-lending law. "We believe the bill provides the most comprehensive, balanced, and effective set of legislative solutions that any federal or state law has ever offered for protecting mortgage borrowers from abusive, deceptive, and unfair lending practices," Rep. Kanjorski said. A subprime lender group, the Coalition for Fair and Affordable Housing, said the bill is a "workable measure" that preserves access to affordable mortgage credit. The Ney-Kanjorski bill is also attracting more Democratic support, according to sources, including several members of the Congressional Black Caucus.

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