Taft seeks restraints on brokers, lenders

COLUMBUS (AP) -- With Ohio having the highest foreclosure rate in the nation, Gov. Bob Taft is calling on the Legislature to enact sweeping safeguards to protect home buyers from predatory lending.
Taft wrote to Republican leaders Thursday recommending that lawmakers remove a provision that exempts mortgage brokers and lenders from a state law prohibiting deceptive sales practices.
Removing the exemption would open up brokers and lenders to lawsuits by the attorney general and individual borrowers who think they have been cheated or misled.
Taft also wants lawmakers to tighten licensing and enforcement of mortgage brokers, lenders, appraisers and title companies; allow the state to suspend licenses automatically for misbehavior; and require more-explicit disclosures to borrowers about the terms of a loan.
Consumer groups and Democrats welcomed Taft's support, saying it would be important in pushing through changes that have stalled for several years in the Republican-controlled legislature.
Senate President Bill Harris and other Republicans have indicated recently that they are reconsidering reform proposals that they rejected several years ago.