September 15, 2014

House debates QM point-and-fees, passes savings bill

The House on Monday evening debated a bill on the designation of "systemically important financial institutions" that includes a qualified mortgage points-and-fees fix and other provisions backed by NAFCU to help draw support when it reaches the Senate.

A vote on the bill will take place today.

On Monday, NAFCU signed onto a letter with other financial services associations supporting the packaged measure, H.R. 5461. The letter stated that this package "includes important technical corrections to the Dodd-Frank Wall Street Reform and Consumer Protection Act that strengthen the underlying Act and provide critical clarifications to better oversee our financial system while allowing for economic growth."

The QM point-and-fees measure, supported by NAFCU, was passed by the House earlier this year as H.R. 3211, the "Mortgage Choice Act." It would exempt from the qualified mortgage cap on points and fees any affiliated title charges and escrow charges for taxes and insurance. This language was added to the SIFI measure and others in a package sponsored by Rep. Andy Barr, R-Ky., in an effort to press Senate action before the end of the year.

NAFCU testified in favor of H.R. 3211, introduced by Rep. Bill Huizenga, R-Mich., in January.

On Monday, the House passed by voice vote H.R. 3374, the "American Savings Promotion Act," sponsored by Rep. Derek Kilmer, D-Wash. Also supported by NAFCU, this measure would allow depository institutions to use savings promotion raffle products in states that permit them. As discussed in NAFCU testimony this July, credit unions have seen some success with such programs, which are seen as one way to help encourage household savings.