The 2008 special session of the Oregon Legislature adjourned without passing legislation to stop the problematic lending practices that have caused the mortgage meltdown, which is dragging down the economy.

Leading up to the session, and during its three-week duration, OSPIRG, working in coalition with AARP-Oregon, Center for Responsible Lending and Our Oregon, called on lawmakers to take steps to rein in the lending practices that contributed to this crisis.

“We’re disappointed the banks and mortgage brokers were able to run out the clock on meaningful mortgage reform,” said OSPIRG Consumer Associate Matt Wallace. “We will continue to make the case for sensible changes to protect Oregon consumers and prevent a crisis like this from occurring again.”

OSPIRG argued for lending standards to require lenders and brokers to make sure a home loan is in the borrower’s financial interest, and to qualify borrowers based on the true cost of the loan, not just the introductory teaser rate. Fair lending policies should also eliminate excessive fees and abusive prepayment penalties, and include strong enforcement provisions.