State Senate unanimously OKs bill prohibiting predatory lending

"MN Senate"

04/13/2007

Star Tribune
Last update: April 13, 2007


The Senate voted unanimously and without discussion Friday to adopt a bill that would prohibit predatory lending practices in the mortgage industry.

The bill forces brokers and lenders to ensure that borrowers have a "reasonable ability to pay." It also bans certain kinds of mortgages to high-risk borrowers that have shown to be ripe for abuse.

The same bill was approved by the House of Representatives several weeks ago. It will go to Gov. Tim Pawlenty in the coming days for consideration. Pawlenty is generally supportive of the legislation, his spokesman has said.

READ MORE: Click HERE