Want Subprime Loan? Must Get Counseling, Legislation Says.
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The House of Delegates began debate yesterday on a bill to require people seeking subprime mortgages to meet with consumer counselors before signing on to risky loans.
The legislation would mandate that consumers seeking subprime loans meet with independent financial counselors in the government or at nonprofit organizations to ensure they understand the terms of the loans. Proponents say the bill will prevent people from getting loans they do not understand, a factor in the tide of foreclosures.
"These advisers are not there to give financial advice," said Del. Brian J. Feldman (D-Montgomery). They would just explain the terms of the loans.
Opponents said they fear the government is overstepping its bounds in requiring credit counseling.
"The intentions are good, but I am questioning whether this is one more big piece of government intervention that's not really going to work," said Del. Susan W. Krebs (R-Carroll).
The House could vote on the measure today. The legislation, by Del. Stephen W. Lafferty (D-Baltimore County), is among several bills this session designed to slow the rate of foreclosures in the state. Most of the bills were introduced by the O'Malley administration.
-- Philip Rucker
'Tech Tax' Vote Postponed
A Maryland Senate committee postponed action yesterday on a plan to repeal the state's computer services tax to get a better sense of whether members of the full chamber are willing to offset part of the lost revenue with a surcharge on the income of millionaires.
Sen. Ulysses Currie, chairman of the Budget and Taxation Committee, said he hopes his panel will take action today. Currie (D-Prince George's) said this week that he has the votes on his committee to pass a plan by Gov. Martin O'Malley that would impose a millionaires tax, in addition to requiring cuts in transportation funding and state agencies, to compensate for the $200 million a year in revenue lost from repealing the "tech tax."
Yesterday, senators on the panel were trying to gauge support for that approach among others in the chamber and the House of Delegates.
