May 8, 2014 – A NAFCU-backed bill clarifying the definition of points and fees under the Truth in Lending Act and applied in CFPB’s qualified mortgage rule was passed by the House Financial Services Committee Wednesday by a voice vote and awaits House action.H.R. 3211, the “Mortgage Choice Act,” introduced by Rep. Bill Huizenga, R-Mich., 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.“We thank the committee for approving this bipartisan legislation, which would ensure greater consumer choice in the mortgage market,” said Brad Thaler, NAFCU’s vice president of legislative affairs. “Making these important exclusions from the cap on points and fees will go a long way toward ensuring that many loans attain qualified mortgage status and credit unions’ ability to keep providing them. We look forward to working with Chairman Hensarling, the bill’s sponsors and members of the House to press for floor consideration of this important relief measure.”Other measures discussed by the committee, and slated for voting after the May 12 week-long recess, include:
Thaler wrote committee Chairman Jeb Hensarling, R-Texas, and Ranking Member Maxine Waters, D-Calif., ahead of Wednesday’s mark-up. He said the mark-up was “a positive step forward” toward achieving the kind of relief sought in NAFCU’s five-point plan for credit union regulatory relief.