Thaler urges action on Mortgage Choice Act
Oct. 23, 2013 – NAFCU Vice President of Legislative Affairs Brad Thaler on Tuesday urged House leaders to take action on H.R. 3211, the “Mortgage Choice Act of 2013,” which would modify the definition of points and fees used to determine whether a loan meets the qualified mortgage standard set by CFPB.
The bill would exclude title charges from the definition of points and fees, and it would clarify that escrow charges should be excluded from any points-and-fees calculation. Thaler, writing to House Speaker John Boehner, R-Ohio, and House Minority Leader Nancy Pelosi, D-Calif., said, “These changes would greatly improve the definition of ‘points and fees’ used to determine whether a loan meets the QM test, and would ensure that those with low and moderate means would continue to be able to obtain their mortgages from their credit union at a reasonable price.”
CFPB’s QM and ability-to-repay provisions take effect in January. Introduced by Rep. Bill Huizenga, R-Mich., H.R. 3211 is aimed at ensuring consumers continue to have access to affordable housing under the Dodd-Frank Act.
Thaler points to a September 2013 survey of NAFCU member credit unions that showed nearly 72 percent of respondents 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,” Thaler noted.
NAFCU letter on H.R. 3211, The Mortgage Choice Act of 2013 (10-22-13)