Congress is putting the finishing touches on legislation that, among other provisions, restricts "reverse redlining" and reforms the national flood insurance system, with the House acting overwhelmingly Aug. 4 and the Senate scheduled to take up the legislation Aug. 5.

Among the key provisions in the massive legislation, the Community Development and Regulatory Improvement Act of 1994, H.R. 3474, the bill imposes tough disclosure requirements on high-cost mortgages and mandates that lenders determine whether the borrower has the income needed to pay off the loan before granting it. The disclosure requirements come into play when interest rates and fees exceed the yield on comparable Treasury securities by 10%.

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