Newsroom

June 09, 2014

NAFCU-backed 'Mortgage Choice Act' passes House

June 10, 2014 – The House Monday evening passed NAFCU-backed H.R. 3211, the "Mortgage Choice Act of 2013," which clarifies the definition of points and fees under the Truth in Lending Act and applied in CFPB's qualified mortgage rule.

The bill passed by voice vote under a suspension of the rules.

H.R. 3211, introduced by Rep. Bill Huizenga, R-Mich., and Gregory Meeks, D-N.Y., would adjust the Truth in Lending Act mortgage rules by exempting from the qualified mortgage cap on points and fees any affiliated title charges and escrow charges for taxes and insurance.

Brad Thaler, NAFCU's vice president of legislative affairs, wrote House Speaker John Boehner, R-Ohio, and Minority Leader Nancy Pelosi, D-Calif., yesterday noting support for the bill.

"The Mortgage Choice Act of 2013 would make important changes that would exclude title charges from the ‘points and fees' definition, and clarify that escrow charges should be excluded from any calculation of ‘points and fees,' " Thaler wrote. "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."

NAFCU yesterday also joined a coalition of other financial services trades in a joint letter of support for the legislation.