Rep. Ney (R-OH) anticipates introducing on January 7, 2003, the first day of the 108th Congress the "Responsible Lending Act" [pdf] . This bill will likely be a vehicle for consideration of federal preemption of state and local predatory lending laws.

Of interest to the secondary markets, Section 103 (p. 25) of the bill would amend the Home Ownership and Equity Protection Act (HOEPA)--part of the Truth in Lending Act (TILA)--to limit assignee liability for failure to comply with the bill's requirements on "high-cost mortgages." Section 104 (p. 28) would provide for preemption of state and local law.

To Read a Darft Copy of the Bill Click Here