Brokers Oppose Mortgage-Reform Bill

Oregonian (02/05/08); Frank, Ryan
In Oregon, Sen. Ben Westlund, D-Bend, has formulated a plan to overhaul the state's mortgage lending laws, although his proposal may require some tweaking if legislative approval is to be won. Westlund is pushing to curb the same high-risk lending practices that helped inflate the recent national housing boom, pointing to rising foreclosures in the state as proof that such action is needed. However, he is opposed by mortgage brokers who question whether Oregon needs tougher laws, considering that it ranked third-lowest in delinquent mortgages nationwide through the first nine months of last year based on Mortgage Bankers Association statistics. In total, Westlund's bill offers nine main changes, including the elimination of penalties for borrowers who want to make early payments on subprime and nontraditional loans and a requirement that creditors verify that borrowers have sufficient income to cover mortgage payments.