Congress is puzzling over home loan reform
WASHINGTON - Congress is looking at reforms to risky home lending practices, although a House subcommittee hearing on Tuesday suggests lawmakers are still sorting out the complexities of the mortgage market and wondering whether reforms will be helpful.
With the number of foreclosures nationally jumping 47 percent in March from a year ago, lawmakers are weighing whether new lending rules are needed or whether the market is already self-correcting.
Last week, Sens. Charles Schumer, D-N.Y.; Sherrod Brown, D-Ohio; and Bob Casey, D-Pa., introduced a bill that would mandate tougher federal standards for mortgage lenders, even as Senate Banking Committee Chairman Christopher Dodd, D-Conn., was emphasizing that increased regulatory oversight and voluntary reforms by lenders are preferable to legislation.
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