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NAFCU's Brad Thaler on Tuesday urged Senate leaders to move on S. 1577, the "Mortgage Choice Act of 2013," before the ability-to-repay and qualified mortgage provisions from the Dodd-Frank Act take effect in January.

Writing Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., Thaler, NAFCU's vice president of legislative affairs, noted concerns with the current definition of "points and fees" and how this will affect mortgage loans once the QM requirements kick in.

Thaler said 72 percent of respondents in a 2013 survey of NAFCU members indicated that they would not make non-QM loans once the new rule goes into effect. "Without congressional action on this issue, consumers would lose the ability to choose to take advantage of the convenience and market efficiencies offered by one-stop shopping," he wrote.

S. 1577 would clarify the "points and fees" definition by:

• excluding title insurance from the definition; and
• clarifying that escrow charges for homeowners insurance premiums should be excluded from any calculation of "points and fees."