MORTGAGE LOAN COMPLIANCE®

House Financial Services Committee chairman Barney Frank, D-Mass., wants his committee to move quickly and pass a bill that creates a new agency to regulate mortgage lending and protect consumers from financial abuse.

The chairman said he plans to mark up a consumer finance protection agency bill in July and act on other regulatory reforms proposed by the Obama administration when Congress returns from its August recess. Chairman Frank also indicated that he wants to curb the Comptroller of the Currency's broad powers to pre-empt state banking laws. And he wants to craft a pre-emption provision that would become part of the consumer protection agency bill.

"I have spoken to the secretary of the Treasury and initiated conversations with the Comptroller of the Currency, the state attorneys general and state bank supervisors," Rep. Frank said at a committee hearing.

The chairman said the pre-emption provision may render a pending Supreme Court case moot. The high court is expected to issue a decision soon in a case where the New York AG was blocked from investigating national banks for possible discriminatory subprime lending practices.