Democrats on Capitol Hill have introduced legislation that would tighten standards for making home loans and discourage predatory lending.
Marketplace's Bob Moon says the House bill may also allow those who can show they were approved for a loan they could not afford to sue their lender for refinancing or a new loan.
Also, the nation's biggest mortgage lender announced it will modify or refinance $16 billion in loans to homeowners facing higher adjustable interest rates. Countrywide Financial says it will soon begin contacting borrowers and offer them the opportunity to refinance.
Moon talks to Madeleine Brand about Countrywide Financial's announcement, as well as the effort on Capitol Hill to allow homeowners with risky loans to sue Wall Street companies and lenders for relief.