Feinstein Wants Strict Rules to Shape-Up Mortgage Lender Behavior
Thursday, April 3, 2008
Senator Diane Feinstein says she wants to crack down on shady mortgage lenders. She says California is bearing a disproportionate burden of the country's home foreclosure crisis. Eric Niiler reports from Capitol Hill.
Feinstein took to the Senate floor to offer an amendment that would require lenders to have mandatory financial education, stricter licensing and prohibit those with felony convictions. She also wants a public database so consumers can see if their lender passes the new test.
Feinstein : Many Americans trying to get a piece of the American dream have been sold a bill of goods by unscrupulous brokers and lenders.
Feinstein said thousands of California families have been duped into taking risky subprime loans -- and found themselves tossed out of their homes. California accounts for one-fifth of the nation's foreclosures. The amendment is part of a larger mortgage reform bill being debated by the Senate.
From Capitol News Connection in Washington, I'm Eric Niiler for KPBS News.