Banksters To Score Major Advantage In Lending To Consumer Borrowers: Protection Against Homeowner Lawsuits

From The New York Times' Dealb%k blog:

• As regulators complete new mortgage rules, banks are about to get a significant advantage: protection against homeowner lawsuits.
  
  The rules are meant to help bolster the housing market. By shielding banks from potential litigation, policy makers contend that the industry will have a powerful incentive to make higher quality home loans.
  
  But some banking and housing specialists worry that borrowers are losing a critical safeguard. Industries rarely get broad protection from consumer lawsuits, and banks would seem unlikely candidates given the range of abuses revealed during the housing bust.
  
  "A lot of bad things are done in the name of expanding access to credit, as we found out," said Sheila C. Bair, former chairwoman of the Federal Deposit Insurance Corporation and now a senior adviser to the Pew Charitable Trusts.
  
  The legal protection stems from the Dodd-Frank Act, the sweeping regulatory overhaul passed in 2010 to help repair the financial system.

For more, see Banks Seek a Shield in Mortgage Rules.