Minnesota Senate Approves Bill to Prohibit Predatory Lending
Minnesota’s Senate unanimously approved a bill to prohibit predatory lending practices in the mortgage industry. The Minnesota bill requires brokers and lender to ensure that borrowers have a “reasonable ability to pay.” It also bans certain types of mortgages to high-risk borrowers that have shown to be ripe for abuse.
The same bill has already been approved by the Minnesota House of Representative. It will go to Governor Tim Pawlenty for his signature. The Governor has been supportive of the legislation.
Is there a state that does not suppport this kind of legislation? I need to move away from Minnesota. This law crushes my ability to buy a home.
If signed into law, when would this take effect? Is a draft of the law available?