The Oregon House of Representatives has approved H.B.3603, which restricts prepayment penalties on subprime mortgages and require fuller disclosure in the subprime market.
‘Oregon homebuyers are the big winners here,’ says Oregon House Speaker Jeff Merkley. ‘This bill paves a much better road for Oregon's homeowners. By restricting prepayment penalties, we're making sure the dream of homeownership doesn't become a nightmare.’
In addition to the provisions of H.B.3603, Merkley has called for legislation requiring lenders to offer borrowers the best loan for which they qualify, and strengthening underwriting standards to ensure that borrowers can repay the full cost of the loan – not just the low teaser rate.