WASHINGTON - Over objections from the banking industry, the District of Columbia's City Council has passed the nation's first bill that would let homeowners contest a foreclosure on the grounds that an initial loan was predatory.

If the court then ruled in the homeowner's favor, foreclosure proceedings would be halted and the homeowner compensated by the lender.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.