An article posted by the Enquirer Wednesday morning looked at Ohio’s increasing foreclosure rate, which is the highest in the country at 3.3% compared with the national 1 percent incidence. Indiana (2.8%), Kentucky (1.9%), and Mississippi (1.7%) are next in line, according to a recent Newsday article. All of which’s led to calls for mortgage reform and predatory lending laws.
Ohio and Virginia are the only two states which haven’t expanded consumer protection laws to include mortgage practices.
Last week a bill was introduced in the Ohio Senate which, according to the Enquirer article, would allow the attorney general’s office take action against inflated appraisals & equity stripping—which have been at the heart of an ongoing federal probe brought to light in August 2003 as part of an investigation by that paper. Additional information there by the Columbus Dispatch.
Not to be outdone, there are two bills in the House of Representatives which are getting a little more than usual attention. HR 1182 (Miller-Watt-Frank), among other things, seeks to amend the Truth in Lending Act to impose restrictions & limitations on high-cost mortgages and prohibit unfair or deceptive lending practices.
HR 1295’s stated purpose is “to protect consumers against unfair & deceptive practices in connection with higher cost mortgages transactions, strengthen civil remedies available to consumers under the existing law, provide for certain uniform lending standards, and enhance appraisal standards & oversight. (Ney-Kanjorski)
The Ohio Mortgage Bankers Association and the Center for Responsible Lending both have posts opposing the latter bill, saying that it “would create a weak federal standard for addressing predatory mortgage lending practices and dilute existing laws in 36 states —including Ohio.
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