Sen. Kohl Taking Shot at Predatory Lenders

Green Bay Press-Gazette (WI) (02/19/08); Phelps, Nathan
Sen. Herb Kohl, D-Wis., is currently drafting legislation aimed at making predatory lending practices more difficult. The lawmaker's new bill aims to halt such practices by increasing disclosures and limiting certain practices. He explains, "The legislation I'm working on will include the right to cancel any contract the homeowner signs with a scammer. It prohibits the scammer from obtaining power of attorney from the homeowner, [and] it prohibits a foreclosure consultant from receiving any compensation prior to the completion of the contract." While the Kohl legislation looks to address the problem at the federal level, state Sen. Dave Hansen, D-Green Bay, notes that there is also similar legislation pending in the Wisconsin state capital of Madison.