Fair Mortgage Practices Act of 2007

H.R. 3012, the Fair Mortgage Practices Act of 2007, proposes stricter national standards for the mortgage industry by requiring all loan originators to be federally registered or state-licensed. The bill aims to protect homebuyers by mandating clearer disclosures for home loans, requiring counseling for borrowers considering "nontraditional" mortgages, and establishing a new Office of Housing Counseling within the Department of Housing and Urban Development (HUD). Additionally, it seeks to stabilize the borrowing process for subprime consumers by requiring escrow accounts for taxes and insurance, limiting certain prepayment penalties, and strengthening the independence of property appraisals to ensure home valuations are accurate and unbiased.