Democrats and consumer advocates have said that many subprime loans, made to people with weak credit, were essentially predatory: containing confusing terms, generating high fees for mortgage lenders and forcing low-income borrowers into loans they can't repay.

The House bill would ban lenders from making loans that borrowers can't repay, create a nationwide licensing system for mortgage brokers and make Wall Street banks that package mortgage securities into investments liable for violations of lending laws.

Critics, including lenders, say the industry has already changed its practices to deal with the post-boom housing market.

The National Association of Mortgage Brokers takes issue with one part of the legislation but still hails the bill as a "victory for borrowers and small businesses." You can see the press release here.