Action on Capitol Hill May 22 saw the passage of three pieces of legislation that supporters in the finance industry say will facilitate mortgage lending.
The House Financial Services Committee approved the Mortgage Choice Act, which had passed by a voice vote earlier this month. The measure sponsored by Rep. Bill Huizenga (R-Mich.) addresses compensation retained by a creditor or its affiliate due to participation in an affiliated business arrangement as defined under RESPA. Under it, such compensation would not be considered "points and fees" as defined under new federal ability-to-repay rules.
The panel also pushed through the Community Institution Mortgage Relief Act, introduced by Rep. Blain Luetkemeyer (R-Mo.). The proposal would waive certain RESPA requirements for credit unions and other lenders with fewer than $10 billion in assets and also would exempt mortgage servicers with portfolios of fewer than 20,000 loans from certain servicing requirements under RESPA.
Additionally, Rep. Andy Barr's (R-Ky.) Portfolio Lending and Mortgage Access Act received a green light. The bill would grant "qualified mortgage" status to mortgages held in portfolio.