The Ohio House of Representatives passed new legislation to combat mortgage fraud yesterday, and now the bill will go to a conference committee with the Senate to work through some of the minor details.

The law will look at  predatory lending and provide a much needed framework to protect consumers from unscrupulous lenders.

Reacting to Ohio’s dismal foreclosure rate and media reports highlighting the state’s lax oversight of the industry, lawmakers for the first time would submit brokers and non-bank lenders to the Consumer Sales Practices Act. Ohio is one of only two states that completely exempt the industry from such protection, which is enforced by the attorney general and through private lawsuits.
But the House and Senate chose different ways to go after deceptive mortgage brokers and lenders.
The Senate unanimously voted not to concur with the House changes, sending the measure to a conference committee that will meet when lawmakers return in May.
Some senators, including Joy Padgett, a Coshocton Republican and sponsor of the bill, said they need time to digest all the changes. Sen. Robert L. Schuler, R-Cincinnati, said last night he already was sent a warning from a congressional subcommittee that the bill could halt real estate lending because the state would be out of compliance with federal law.
Among the concerns being raised by some senators is how the bill defines predatory lending — whether the industry could skirt the rules, or continue to rip people off as long as they do more disclosure.
Both House Democrats and Republicans spoke highly of the bill and the rare bipartisan process used to craft it.  via The Columbus Dispatch

Related posts:

1. The Waxman-Markey Cap and Trade Bill Will Control Housing Standards
2. Will Senator Dodd Go Down Over Sweetheart Countrywide Loans?
3. Countrywide Told Dodd and Conrad They Were Getting Special Deal on Mortgages
4. Mortgages May Be Safe From Bankruptcy Judges
5. Countrywide Mortgages Friends Of Angelo Program Investigation Stalled