Recognizing the disparities that are associated with predatory lending abuses in minority communities and expressing the sense of the Congress that as new abuses continue to emerge, such laws should ensure that all those responsible for representing and protecting families have the authority to act to address these new problems.

[AI summary unavailable — showing source text] Declares that Congress recognizes that: (1) for most types of subprime mortgages, borrowers of color are more likely to receive higher rate loans; (2) there are many factors that have played roles in making these mortgages more costly to these borrowers; and (3) policymakers should review whether lower cost lenders need additional incentives to help meet the credit needs of communities of color. Encourages: (1) fair pricing of home mortgages based only on legitimate risk factors and facilitates economic progress for all borrowers; and (2) lenders to eliminate discretionary pricing in the subprime mortgage market, and to adopt transparent, market-driven prices for mortgages representing similar risks. Encourages more transparency by: (1) addressing yield-spread premiums in laws designed to protect homeowners from abusive lending practices; (2) prohibiting yield-spread premiums subprime and nontraditional home loans; (3) improving transparency of yield-spread premiums by requiring brokers to explain to applicants what the rate, payment, and fees on the loan could be with and without such premium; (4) following the trends of the securities industry, holding lenders and brokers respons…