Subprime mortgage legislative proposals from US Congress

The lawmakers are back in Washington, after taking the month of August off for a little R & R. One of the first matters they've decided to work on is the subprime debacle that still roils the mortgage market. Some of the ideas they are planning to float for debate are quite controversial even before being officially introduced. Kind of a test to see what the reaction in the field might be.

One of them is a provision where the investors purchasing mortgage-backed securities on the secondary market would be liable for lender misconduct. More details are needed to fully assess this one, but it appears to be a bad call. Please click on the link in this paragraph to read the entire article.