It’s not very often that mortgage lenders and consumer groups find themselves on the same side. But it’s happening now, since yesterday’s passage of a predatory lending bill. Of course, they are upset for different reasons.

Mortgage lenders are upset over provisions in the bill limiting their ability to make money off of hefty origination incentives and exorbitant prepayment penalties. There is also static over requirements for increased education.

Consumer groups complain that the new federal lending standards are weaker than many state standards, and pre-empting the tougher state standards will just harm consumers more, according to ConsumerAffairs.com:

“We cannot support a bill that eliminates strong state-law remedies for
the victims of predatory mortgage abuses,” said Ed Mierzwinski,
consumer program director of U.S. PIRG. “Consumers need these
protections now more than and ever, and intentionally or not, this
federal law creates rights without remedies.”

The only people happy with the bill? Well, according to Inman News, some think that lawyers and landlords will be the main beneficiaries:

Rep. Tom Feeney, R-Fla., called HR 3915
"the landlords and lawyers relief act," because he said it would make
it more difficult for renters to become home buyers, and make lenders
and the investors who back them more vulnerable to lawsuits.