Newsroom

May 03, 2013

NAFCU supports 'Consumer Mortgage Choice Act'

May 6, 2013 – NAFCU Executive Vice President of Government Affairs Dan Berger wrote the chairman and ranking member of the House Financial Services Committee on Friday to urge their support for a bill to update the definition of "points and fees" used to determine what is a qualified mortgage.

H.R. 1077 – the "Consumer Mortgage Choice Act" – was introduced by Representative Bill Huizenga, R-Mich., in March. The legislation would make it easier for consumers to qualify for QM loans at a lower rate by changing the definition of points and fees as it applies to affiliated loans. The bill would alter the definition to prevent double-counting of loan officer compensation and exclude title charges, escrow charges, loan level pricing adjustments and lender-paid compensation to mortgage brokers (all currently included in the term's definition).

Berger urged Rep. Jeb Hensarling, R-Texas, and Rep. Maxine Waters, D-Calif., to make an effort to pass the bill before the ability-to-repay provisions from the Wall Street Reform and Consumer Protection Act go into effect next January.