A U.S. representative reintroduced the Predatory Lending Practice Reduction Act of 2007 on Thursday. The well-known act seeks to create regulations requiring all mortgage brokers and agents engaged in subprime to obtain federal certifications.

U.S. Representative Stephanie Tubbs (D-Ohio), who reintroduced the act, said the legislation also will fund partnerships with community development corporations to create more education and training.
“Predatory lending is a leading cause of foreclosures across this country,” said Rep. Tubb Jones.” “It compromises the opportunity to own a home and hinders economic stability, creating greater disparities in wealth.”
The legislation specifically calls for several initiatives, including a $2 million-certification program that requires subprime brokers and agents to be trained and tested on all the rules and regulations, another $2 million to enhance community development corporations who raise awareness, the development of minimum disclosure standards, and a call to creditors to create industry best practices and good-faith resolution standards.