Suitability Bill On The Way

Senator Chuck Schumer, D-N.Y., is drafting a predatory lending bill that would create suitability standards for mortgage lending and a national regulatory system for all mortgage brokers.Congress must respond to the "emerging crisis" in the subprime market," Sen. Schumer said. "When so many mortgage brokers are able to deceive our most vulnerable families into loans that they can never afford, without batting an eye -- the system is broken." The suitability standard will ensure mortgage lenders and brokers "never issue a loan that the borrower cannot afford," he said. The New York senator, who chairs the Senate Banking subcommittee on housing, said he will be introducing the bill "very shortly."