Congress must prevent lending against unverified (“stated”) income or assets, prohibit “Option” (negative amortization) mortgages, ban prepayment penalties and require conservative, proven mortgage practices be followed, including but not limited to the requirement that borrowers be qualified at the highest rate a mortgage can reset to over the life of the loan and the “back end” ratio (DTI) on all mortgages not exceed 36%
This part may not even be Constitutional as it prevents legitimate commerce. What is illegal about two adults contracting, may be a poorly advised, financial relations?
