February 11, 2008
Mortgage Brokers Feel More Heat
As Congress has attempted to target those responsible for abusive home loans, mortgage brokers have so far escaped the brunt of its wrath.
The brokers face their biggest challenge in coming months as the Senate begins work on legislation to curb predatory lending. Senate Banking Chairman Christopher Dodd, D-Conn., and Sen. Charles Schumer, D-N.Y., have fingered mortgage brokers as a primary culprit of the crisis, noting that while the industry was responsible for originating as much as 70 percent of subprime loans in recent years, it had little oversight from state regulators -- thus contributing to a marketplace that allowed as many as 2 million borrowers to be placed into loans they could not afford to repay.
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