110TH CONGRESS 1ST SESSION

H. R. 3915

To amend the Truth in Lending Act to reform consumer mortgage practices and provide accountability for such practices, to establish licensing and registration requirements for residential mortgage originators, to provide certain minimum standards for consumer mortgage loans, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 22, 2007 Mr. MILLER of North Carolina (for himself, Mr. WATT, Mr. FRANK of Massa­chusetts, Ms. WATERS, Mrs. MALONEY of New York, Mr. GUTIERREZ, Ms. CARSON, Mr. MEEKS of New York, Mr. CAPUANO, Mr. CLAY, Mr. AL GREEN of Texas, Mr. CLEAVER, Ms. BEAN, Ms. MOORE of Wisconsin, Mr. HODES, Mr. ELLISON, and Mr. MURPHY of Connecticut) introduced the following bill; which was referred to the Committee on Financial Serv­ices

Continue Reading »

The Mortgage Reform and Anti-Predatory Lending Act of 2007

Section-by-Section Summary

TITLE I—MORTGAGE ORIGINATION

Sec. 101. Definitions.
Establishes definitions for various terms, including:  “mortgage originator,” “qualified nationwide registration regime,” “qualifying state licensing law,” “residential mortgage loan,” and “securitizer.”

Sec. 102. Residential mortgage loan origination.
Provides that all mortgage originators (including mortgage brokers and depository institutions that originate mortgages) will be subject to a federal duty of care that requires (1) licensing and registration under State or Federal law, (2) diligently working to present consumers with a range of residential mortgage loan products appropriate to the consumer’s existing circumstances, (3) making full, complete, and timely disclosures to consumers, (4) certifying to creditors compliance with mortgage origination requirements under this section, and (5) including in all loan documents the unique identifier of the mortgage originator provided by the qualified nationwide registration regime.  This subsection expressly does not create an agent or fiduciary relationship, but mortgage originators are free to become an agent or a fiduciary if they so desire.  HUD, OCC, OTS, and FDIC, in consultation with FTC, will jointly prescribe regulations to further define the federal duty of care.

Continue Reading »

Prepared Testimony of

Marc Savitt, President-Elect

National Association of Mortgage Brokers

on

“Legislative Proposals on Reforming Mortgage Practices”

Before the

House Financial Services Committee

United States Congress

Wednesday, October 24, 2007

Good morning Chairman Frank, Ranking Member Bachus, and Members of the Committee, I am Marc Savitt, President-Elect of the National Association of Mortgage Brokers (“NAMB”). Thank you for inviting NAMB to testify today on “Legislative Proposals on Reforming Mortgage Practices.” We appreciate this opportunity to share with you our views on the Mortgage Reform and Anti-Predatory Lending Act of 2007 (“H.R. 3915″).

Continue Reading »

H.R. 3915 is poised to .R. 3915 the Mortgage Reform and Anti-Predatory Lending Act of 2007

National Teleconference to Discuss H.R. 3915 the “Mortgage Reform and Anti-Predatory Lending Act of 2007

Mortgage brokers are facing extinction. The U.S. House of Representatives is considering a bill that will fundamentally change the way we are paid, outlaw YSP, and legislate underwriting guidelines into law. Additionally, we fear that all subprime lending will cease to exist due to excessive lender liability. It is important that you read this memo.

We are calling upon our members to respond as never before. To save our industry, we are asking you to learn about this threat and then contact your congressman.

TIME IS CRITICAL. The bill became public last week. The U.S. House of Representatives Financial Services Committee will vote next week.

Continue Reading »

H.R. 3915 Is Bad For Consumers!

This is a critical time. Our Representatives are considering legislation that limits consumers’ options, will raise the cost of financing of a home, and seriously limits competition in the lending industry. H.R. 3915, in its current form, will seriously decrease the options consumers have in the market place and will hurt first time homebuyers and borrowers that need to consider financing options that do not require closing costs to be paid upfront. It is important that we stand up to HR 3915 and the lobbyists and special interest groups that are pushing it, in order to protect consumers and American Home Owners. Do not think this cannot seriously affect you, if you are a current or future home owner, you will be negatively affected by HR 3915 if it passes in its current form, it must not pass!

Breakdown of H.R. 3915, Proposed Mortgage Reform Legislation

H.R. 3915, otherwise known as H .R. 3915 the Mortgage Reform and Anti-Predatory Lending Act of 2007, is poised to effectively end the practice of brokering mortgage loans as we know it by eliminating YSP or Yield Spread Premium. This bill will not only eliminate a necessary part of the lending mechanism that Americans depend on for home financing, but more importantly, it will hurt consumers by raising their costs for home loan financing, decrease competition, and give consumers less options for financing their homes.

Continue Reading »