Governor Taft has signed a bill that targets lenders and mortgage brokers who prey on consumers with bad credit or low incomes. Taft signed the bill yesterday at the home of Larry and Martha Clay of Columbus. They fell victim to fraudulent loan advice from mortgage brokers.
The bill goes into effect in January. It's aimed at protecting home buyers and slowing the soaring rate of foreclosures in Ohio.
The new rules will 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.