Banks Fight Rules Regulating Risky Mortgage Loans

11:54

August 02, 2011

This article is more than 11 years old.

The Dodd Frank bill that passed last year to overhaul finance industry laws has a pretty minimal requirement for home loans.

One such provision requires that lenders should determine that people can probably repay a loan before lending them money to buy a home.

Now the banking industry is challenging that requirement, as it seeks a return to riskier mortgage loans.

The fight comes as banks are negotiating penalties for poor foreclosure practices that led to improper evictions of homeowners.

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Gretchen Morgenson, business columnist for The New York Times and author of "Reckless Endangerment"

This segment aired on August 2, 2011.