House Democrats introduced legislation this week that will allow homeowners to sue Wall Street firms for relief from mortgages that the borrowers never had a realistic chance of repaying.
The bill is part of a broader measure intended to restrict what lawmakers and consumer advocates consider deceptive and improper lending practices in the mortgage market. Critics, however, are warning that the bill could chill and perhaps freeze a huge source of capital that has helped push homeownership in the United States to its highest level.
