The Mortgage Broker Transparency and Accountability Act of 2007

There are many mortgage loan sharks out there, and it may take an act of Congress to protect us against predatory lending. But for most ex-homeowners, the damage has already been done. Causing the subprime market today almost seeming cliché if it wasn't for all the heartache, and ex-home owners scribbling shit stained F-bombs on the walls of the last days of their repossessed homes. Many lenders are willing to sell repossessed homes at a loss just to free their capital. Usually, these homes haven't been fixed up; revealing a disaster area reflecting an ex-homeowner's attitude of, "If I can't have it, then no one will."

Representative Christopher S. Murphy of Connecticut introduced the Mortgage Broker Transparency and Accountability Act of 2007. The bill would require mortgage brokers to disclose information critical to the consumer, i.e. the borrower, purchasing any mortgage products. Examples of disclosure are: duty to inform the consumer of their obligation to pay taxes or insurances, informing them of any prepayment penalties, and to only provide reasonable choices regarding mortgage product matching with the consumers stated needs. Examples of stated meaning, verifiable income and other documents relevant to qualification, etc...

The new bill was introduced to the 110th Congress in Aug 1, 2007 and hasn't yet to be scheduled for a debate. In order for the bill to pass; after the debate, both the House and Senate will vote following a signing by the president.

This act will hopefully discourage any unethical oh well shoulder raising, "Woops I forgot to tell you..." event from happening.

It's terrifying to find fraud of this sort, as if a nationally spreading parasite draining the wealth of the United States. Were it's taking an act of Congress to try to prevent it. The magnitude of this corruption could allow many to presume other possible time-bombs still festering to later further effect negatively the US economy.

Apparently adjustable interest rates otherwise known as ARMS, were one of the time-bombs of the current subprime market. ARMS enabled predatory lenders to take advantage of unsophisticated borrowers, by intending to deceive by being vague on the details of their mortgage purchase or through a complete lack of disclosure to the consumer.

Allen J. Fishbein, Director for Housing and Credit Policy Consumer Federation of America, said when attempting to illustrate, "...subprime foreclosures may be the smoking gun of predatory lending." during a testimony in November 5, 2003 before the U.S. House of Representatives.

I guess we all here in the U.S. learned a lesson in all this craziness; that is to read the fine print!