US House panel eyes predatory lending bill

US House panel eyes predatory lending bill
Mon Mar 20, 2006 10:42 AM ET

WASHINGTON, March 20 (Reuters) - A key House Republican on Monday said a group of Republicans
and Democrats was working on a bill to curb predatory mortgage lending modeled on a state law
seen by some as one of the strongest in America.

Alabama Republican Rep. Spencer Bachus, chairman of the House Financial Services Committee's
subcommittee on financial institutions and capital markets, said his panel would consider
the legislation if consensus can be reached.

"A bipartisan group of congressional members are working with consumer and industry groups
in an attempt to fashion legislation patterned after North Carolina's law," Bachus said. "If a
consensus can be reached, a mark-up will be held."

The North Carolina law, among other things, set prohibitions on prepayment penalties and financing
of upfront, single premium insurance on home loans. It also set restrictions on fees and the terms
of high cost home loans.