In the  4  BIS Review 120/2007  case of refinancings, the bill provides that the loan must provide a "net tangible benefit" to the borrower. As I have discussed, the Board supports the goal of ensuring that consumers do not receive unaffordable and abusive loans.
However, it is critical to carefully craft such laws or rules to ensure that they do not inappropriately reduce credit availability in the mortgage market, to the detriment of consumers. The Mortgage Reform and Anti-Predatory Lending Act of 2007 would hold securitizers and loan purchasers ("assignees") liable for the actions of mortgage originators.