Ariz. legislation to limit risky mortgages

Legislation has been introduced to prohibit excessive fees on mortgages and the issuance of certain types of high-cost,home loans in Arizona.
S.B. 1288,introduced by Sen. John Nelson, R-, of Glendale, calls for limiting negative-amortization mortgages as well as balloon payments and pre-payment penalties on most other mortgages.
The Arizona Attorney General backs the legislation, which is aimed at preventing another foreclosure crisis in the state.
A growing number of foreclosures in the Phoenix area are on "negative am" mortgages, which allow borrowers to pay less than what they owe in principal each month. But then those homeowners have to make up what they …

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