Our legislation will encourage the conservative principle of free-market competition. As a result, lenders have no incentive to try to hold down such costs and simply pass them on to consumers. Give homeowners who are behind on their mortgage payments earlier notice of impending mortgage foreclosures, so steps can be taken in an effort to avoid foreclosure. Consumer groups have found that this is much more costly to consumers than simply taking out a standard life insurance policy and making payments once a year or several times a year. Place new restrictions on balloon mortgages for high-cost loans.
Balloons require that a mortgage be paid off in a lump sum after a short time.
Require greater overall consumer education, including additional disclosure to consumers about the way the mortgage process works - with specific information on mortgage brokers, escrow accounts, private mortgage insurance and other topics.