House eyes mortgage reform, predatory lending

March 27, 2009 – The House Committee on Financial Services is slated to take up a mortgage reform and anti-predatory lending bill Tuesday that could create unintended regulatory burdens for credit unions.

H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act, features many of the same provisions contained in last year’s House-approved mortgage-reform bill, H.R. 3915. Though NAFCU noted at the time that that bill had good intentions, it pointed out to lawmakers several concerns it had regarding requirements on mortgage disclosures, penalties for steering, a requirement to ensure the borrower has reasonable ability to repay and, among other things, a national standard for assignee and securitizer liability.

One key provision of H.R. 1728 would create a nationwide licensing and registration system for residential mortgage providers, something already included in the 2008 Housing and Economic Recovery Act. NCUA and other federal financial institution regulators are responsible for handling implementation for credit unions, banks and thrifts.

Tuesday’s session will be held at 10 a.m. in the Rayburn House Office Building. The committee said it may also hold additional sessions on subsequent days if needed.