Yesterday, House Democrats revealed legislation designed to curb predatory lending practices. The idea is to force mortgage lenders to carefully consider whom they are giving loans to. Inman reports on the basics of the new predatory lending bill:

The product of months of hearings, "The Mortgage Reform and Anti-Predatory Lending Act of 2007" would create new minimum standards for all mortgages — including a requirement that lenders make good-faith determinations of a borrower’s ability to repay.

Lenders would also be prohibited from making refinance loans that don’t provide "a net tangible benefit to the consumer," the bill’s sponsors said in a summary of the legislation.

Additionally, the bill would allow for individuals to pursue suits against mortgage lenders, but does not allow for bringing class-action suits.