HR3915 Passes Congress!!! Mortgage Brokers days of taking advantage of Consumers comes to a long awaited End!

As the kids say now a days..... "Its ovah son, Its OH-VAH!"

Thanks to the wonderful piece of legislation known as The Mortgage Reform and Anti-Predatory Lending Act of 2007. Mortgage Brokers will no longer be able to:

• Make a profit at your expense with YSP or Yield Spread Premium, which is is the cash rebate paid to a mortgage broker based on selling an interest rate above the wholesale par rate that the borrower qualifies for.

Originators are prohibited from "steering." The proposed law states that an originator may not receive, directly or indirectly, any incentives (and in the most controversial provision, expressly includes yield spread premiums in that definition) that are based on or vary with the terms of the loan.

• Give no down, no document loans to illegal immigrants and flippers who think they "Deserve" a half million dollar house.

minimum standards for residential mortgages states that no creditor may make a residential mortgage loan unless he first makes a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated the consumer has a reasonable ability to repay the loan under its terms and to pay all applicable taxes, insurance, and assessments.

Good job Congress, It is nice to see the government actually pass meaningful legislation for once.

For a good laugh you can read mortgage brokers crying about this bill here.