Will low and medium income families be able to qualify for home loans under this new bill?

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November 14, 2007
H.R. 3915 Would Impose New Burdens and Limits on Moderate Income Borrowers
by Ronald D. Utt, Ph.D.
WebMemo #1703
The Manager’s Amendment to the Mortgage Reform and Anti-Predatory Lending Act of 2007 (H.R. 3915) was reported out of the House Financial Services Committee earlier this month and is now before the full House for consideration. Originally crafted for the purpose of addressing the many flaws in the mortgage market that led to the subprime mortgage turmoil, the current bill would encourage lenders to limit their lending to only the very best credit risks. This would put individuals of moderate incomes, imperfect credit histories, and limited wealth at an even greater disadvantage, leading to a decline in the homeownership rate, now at record levels. Among the victims of this mandatory credit quality cleansing would be members of some ethnic minority groups whose current homeownership rates are today only slightly better than the homeownership rate for the nation as a whole in 1890.


  1. Reply
    May 1, 2011 at 12:47 am

    the law was to stop predatory sub prime lending. if your credit is good then your loan amount would depend on your income level. im not sure what your asking. If you have low income you will qualify for a loan you CAN afford to pay back. I think your asking if low income ppl will get some sort of “handout”. and the answer would be no! You can borrow what you can afford to pay back and thats it!

  2. Reply
    May 1, 2011 at 1:03 am

    What you do then is rent from a rich person. sub prime days are gone,,,,the boom is over,,,deal with it,,,,most Americans got plenty of money anyway…chow freepress

  3. Reply
    May 1, 2011 at 1:41 am

    For Shame ,for shame to the mortgage lenders who gave credit for housing with their creative APR financing to people who they knew were not able to afford it. That is why our economy is in a bind. It is the low cost housing that have all the foreclosures. The more expensive homes are still booming.
    This bill is to PROTECT those sub prime buyers from getting caught up in the creative lending practices and purchasing homes they can not afford and having their credit ruined in the future.
    No, this bill will make it harder to get a loan. You will have to have money down and make enough income to buy what you want.

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