Gov. Blagojevich suspends mortgage counseling law

A law requiring home buyers with poor credit in certain South Side neighborhoods to get mortgage counseling has been suspended by Gov. Blagojevich, according to a story in the Homelife section of Sunday’s Chicago Sun-Times. The four-year pilot program was aimed at protecting buyers from predatory lending in the 10 Cook County zip codes with the highest rate of foreclosures. But critics contended the law unfairly stacked the deck against the very people it was meant to help, making lenders even less likely to work with buyers with credit scores under 620. The suspension of the law has Dan Green, a mortgage planner and blogger, wondering what will happen to buyers whose loans are already in process. For more debate, click here for a recent, lively discussion about this issue on the yo.

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