Lawmakers add to bill with borrower protections

The bill requires more licensing for those in the lending industry.
COLUMBUS (AP) -- Lawmakers rebuffed efforts Wednesday to protect mortgage brokers and lenders from lawsuits, instead inserting more borrower-friendly provisions in a bill trying to lower Ohio's skyrocketing foreclosure rate.
The Senate voted 29-4 to send the bill clamping down on predatory lending practices to the House, where Speaker Jon Husted called it a good foundation.
The Dayton-area Republican said he hadn't studied all the specifics but wants to ensure the bill stays focused on stopping fraudulent practices without hampering business.
What has been changed
The bill adds mortgage brokers and lenders that aren't otherwise covered by federal banking regulations to Ohio's consumer protection act, requires more licensing for those in the industry and increases enforcement authority of local prosecutors and the state attorney general.
The Ohio Chamber of Commerce learned late of a provision that requires brokers and lenders to act in the best financial interests of their customers -- similar to requirements for stockbrokers and insurance agents.
Strengthened the requirement
But instead of removing the requirement as the chamber suggested, a Senate committee strengthened it, saying the brokers and lenders can't ask customers to sign papers saying the lenders don't have to adhere to a requirement to act in the borrowers' best interest.
"We think we improved it," said state Sen. Robert F. Hagan of Youngstown, D-33rd, who voted for the bill. "Most of the concerns we had have been taken care of."