Congress cracks down on loan originators

December 31, 2008 05:36PM

To curb the housing crisis
and avoid more bad mortgages, Congress has tacked on more obligations
for loan originators, including undergoing background checks and ethics
training. Large banks, like Wachovia and Bank of America, have stopped
offering mortgages through brokers, relying instead on loan
originators. Sam Rogers of the Center for Responsible Lending said
about 2.2 million subprime foreclosures will occur next year.

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