The House has approved legislation (S. 386) to amend the federal criminal fraud laws in order to strengthen the government's ability to combat fraud in the mortgage market.rnThe House passed the bill, 367-59, on May 6, making a few changes to the Senate-approved measure. (For background, see Current Developments, Vol. 37, No. CD-9, p. 276.)rnLike the Senate version, the House bill would amend the definition of financial institution in the federal criminal statutes to include a mortgage lending business, but the House bill would also add any person or entity that makes federally related mortgage loans, as defined in the Real Estate Settlement Procedures Act (RESPA).rnBoth bills would define a mortgage lending business as an organization which finances or refinances any debt secured by real estate, including any subsidiaries, and whose activities affect interstate or foreign commerce.
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