Governor Taft today signed into law a measure designed to prevent predatory lending. Taft signed the law at the Columbus home of Larry and Martha Clay who were victims of predatory lending.
The measure requires licensure of appraisers as well as national criminal background checks for mortgage brokers, loan officers and appraisers. The bill prohibits a mortgage broker from bribing or otherwise trying to influence an appraiser.
The new rules target sub-prime loans, which generally carry interest rates above eight percent and are designed for people who can't qualify for traditional mortgages.
Those in the mortgage industry who fought the bill have warned it could drive up costs for consumers.
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