February 17, 2017

Huizenga reintroduces mortgage points-and-fees bill

House Financial Services Subcommittee Chairman Bill Huizenga, R-Mich., last week reintroduced NAFCU-supported legislation that would clarify the definition of points and fees under the Truth in Lending Act as applied through the CFPB's qualified mortgage rule.

The bill, H.R. 1153, was cosponsored by Reps. Ed Royce, R-Calif., David Scott, D-Ga., Steve Stivers, R-Ohio, Gregory Meeks, D-N.Y., and David Joyce, R-Ohio. It awaits action by the House Financial Services Committee; Huizenga chairs the Subcommittee on Capital Markets, Securities and Investment.

The legislation 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.

An identical bill, "The Mortgage Choice Act of 2015" (H.R. 685) passed the House last Congress 286-140.