Sen. Dodd proposes mortgage reform bill

Reuters reports:

The chairman of the Senate Banking Committee unveiled legislation on Wednesday that would prohibit mortgage brokers and lenders from steering borrowers to high-cost loans.

The reform measure is meant to curb some of the excesses of the recent housing boom, which has caused a spike of loan delinquencies and foreclosures, according to Sen. Christopher Dodd, a Connecticut Democrat.

The legislation "will put an end to the practices that have forced thousands of Americans into foreclosure and put thousands more in danger of losing their homes," Dodd, a contender for the Democratic nomination for the presidential election in November 2008, said in a statement.

How ironic,Senator Dodd is proposing to cut the demand for real estate right now.