Members of the House Financial Services Committee voted to approve a bill imposing sweeping changes on the mortgage industry, including minimum standards for approving loans and some new liabilities on those who securitize risky mortgages.
Committee members OK'd the bill by a vote of 45 to 19. The bill would mandate licensing for mortgage brokers and bank loan officers and set a minimum standard for all mortgages stating that borrowers must have a reasonable ability to repay. The bill was introduced by Democrats Barney Frank, Mel Watt and Brad Miller. Frank, of Massachusetts, is the committee's chairman.