Lenders and lawmakers have been clashing on Capitol Hill during the past few months, and now for the first time a serious attempt at mortgage reform has a chance of passage.

So far, the House of Representatives has approved the so-called "Mortgage Reform and Anti-Predatory Lending Act of 2007 by a veto-proof margin, 291-127.

In passing the reform bill, the House approved a series of benchmarks that would revolutionize the lending industry if the bill becomes law. For instance:

• The bill says loan originators would have to be licensed. Licensing means that there would be educational standards and clear ethical requirements.

• The legislation requires lenders to show that a borrower has a reasonable ability to repay a loan at the fully-indexed rate, not just a teaser rate. This means lenders will have to fully document virtually all loans to reduce their liability.

So why do some lenders like the House bill while other lenders and consumer groups are opposed?

Few lenders actually like the House bill, what some like is that it did not go as far as it might have gone. In other words, the reform bill is the best they could get.

Other lenders oppose the bill because they believe that for the first time lenders will have an obligation to get the best possible price and terms for borrowers, a standard that does not now exist for federally-regulated lenders or those in most states.

Meanwhile, while consumer and civil rights groups are generally happy with the reform bill, they want it to go further. For instance, AARP, the AFL-CIO and the Consumer Federation of America say the bill does not provide sufficient grounds to sue unscrupulous lenders.

Stay tuned. The great mortgage debate of 2007 has just begun.

Published: November 26, 2007

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Peter G. Miller, also known as OurBroker®, is the author of six real estate books -- including The Common-Sense Mortgage -- and is the original creator and host of America Online's Real Estate Center. Peter's weekly columns appear in more than 100 newspapers nationwide, he is also published in a variety of other media outlets and he is a frequent speaker at national events and conventions. Peter welcomes your questions, comments, and news releases via e-mail at .