Lawmakers are still trying to find ways to solve the [tag-tec]sub-prime[/tag-tec] borrower mess.
North Carolina’s law is now being touted as a reasonable solution for protecting this class of borrower. Is it?
The law clearly states a borrower cannot take out a loan with points and fees exceeding five per cent of the total loan. The mortgage company or bank must acknowledge the [tag-ice]sub-prime[/tag-ice] borrower can pay back the loan.
Plus independent counseling must be provided for the [tag-self]sub-prime[/tag-self] borrower before he signs the loan.
Now the House Financial Services Committee is seriously looking at this law and could create a federal version of it.
Is this the answer?