Summary
H.R. 1182, the Prohibit Predatory Lending Act, seeks to protect homeowners by tightening federal regulations on high-cost mortgages and subprime lending practices. The bill would prohibit lenders from engaging in "equity stripping" or "flipping," which involves refinancing a loan without providing a tangible benefit to the borrower, and would ban the practice of financing single-premium credit insurance into a mortgage. Additionally, it would require mandatory pre-loan counseling for borrowers considering high-cost loans and would increase the legal penalties for lenders who violate these consumer protection standards.
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