The Bush administration has come out strongly against the anti-predatory lending bill being introduced by Congress. Their biggest objections are the limitations being imposed on lenders premiums, the bills attempt to prohibit penalties on subprime loans (the biggest focus on the national spotlight these days) and a very controversial measure which would create a limited liability of the companies buying loans on the secondary market.
This measure would in effect get the security backed mortgages a huge insurance against default--switching the liability from those Wall Street companies.
The adminstration was quoted in Inman News as having said they are against the provisions that "could overly constrict the primary and secondary markets for mortgage finance" include the bill’s specific underwriting standards, assignee liability provisions, and subjective obligations for mortgage originators."
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