A massive new mortgage reform bill has Washington real estate and banking groups buzzing, both critically and in favor.

The bill was introduced last week by House financial services committee chairman Barney Frank — who’s arguably the most influential legislator on housing issues on Capitol Hill.

Supporters say the 151-page bill would have gone a long way to preventing mortgage lending excesses during the housing boom, especially no-documentation, negative amortization and zero downpayment deals, had it been federal law before the boom started in 2002 or 2003.

The bill, which is expected to pass the House easily this month and go to the Senate in May, would change home mortgage lending fundamentally.

Here’s how. It would discourage lenders from making anything but “plain vanilla” 30-year fixed rate mortgages with full documentation and strict underwriting.

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