Skip to main content

Silver Hill appoints Demarest as SVP

Feb 14, 2008

Legislative attacks on brokers continueMortgagePress.comSB 2452, Sen. Chris Dodd, prime borrowers, sub-prime loans, good faith and fair dealing Sen. Dodd introduces SB 2452 U.S. Sen. Chris Dodd (D-CT), Chairman of the Committee on Banking, Housing, and Urban Affairs, has introduced the Homeownership Preservation and Protection Act of 2007, SB 2452. "This is a very serious effort to change the model of the mortgage origination business," said National Association of Mortgage Brokers Past President Joe Falk during an NAMB teleconference on SB 2452. If enacted, SB 2452 will: •Establish new protections for all borrowers. It will prohibit Mortgage Brokers from steering prime borrowers to more expensive sub-prime loans, create a fiduciary duty for Mortgage Brokers towards borrowers, and provide for a duty of good faith and fair dealing toward borrowers for all lenders. •Establish new protections for sub-prime borrowers and borrowers who obtain non-traditional mortgages. It will require a real analysis of the borrowers' ability to repay the loan. The bill prohibits pre-payment penalties and yield spread premiums (YSPs) on these loans, and requires that these loans provide a net tangible benefit to the borrower. •Provide strong remedies to make sure these standards are met. It will allow state attorney generals to enforce the provisions of the law, and does not pre-empt state law. •Provide for limited liability for holders of a mortgage made in violation of law, whether it is the original lender or a subsequent investment trust. Unlike current law, which puts the burden on the borrower to find the party responsible for causing the harm, the legislation allows the borrower to go directly to the current mortgage holder for a cure. "We have a lot of work to do with regards to this bill [SB 2452] and other issues, and it appears that this bill is very intense and could prove to be quite grave to our industry," said NAMB Government Affairs Committee Chair Denise Leonard. For more information and updates on SB 2452, visit
About the author
Feb 14, 2008
Fannie Mae Implements Notice Of Potential Defect Process To Address Loan Repurchase Risks

Faced with market challenges, Fannie Mae reintroduces a Notice of Potential Defect, allowing lenders a grace period to rectify significant loan issues before repurchase requests, amid calls for broader industry reform.

Feb 29, 2024
Rocket Pro Originate Mortgage Platform To Close; Shifts Focus To Mortgage Brokers

Rocket Pro Originate, a platform serving real estate agents and financial professionals, announces closure.

Feb 28, 2024
United Wholesale Mortgage Reports Fourth Quarter Loss Of $461 Million, But Remains Bullish For 2024

UWM Chairman and CEO Mat Ishbia optimistic despite financial setback, cites operational profitability and broker dominance.

Feb 28, 2024
Condo Prices, Sales Falling In Florida

New regulations and rising insurance costs hold back buyers in six major metros.

Feb 26, 2024
Buyer Beware

Unpriced climate risk the housing market’s bubble in the bloodstream.

Feb 26, 2024
Rocket Companies Reports Decline in Fourth Quarter Revenue, Projects Optimism for Future Growth

Despite revenue dip, mortgage giant sees increase in market share and advances in AI technology.

Feb 22, 2024