The House Financial Services Committee has given the nod to the proposed Mortgage Choice Act, which can now move to the floor of the U.S. House of Representatives for consideration.
Introduced by Rep. Bill Huizenga (R-Mich.), the bipartisan measure would amend and clarify the qualified mortgage (QM) definition under the Dodd-Frank Act. Supporters say it will improve access to credit and qualified mortgages for low- and moderate-income borrowers while protecting consumers from unfavorable loans. H.R. 3211 would adjust the Truth in Lending Act definition of fees and points by exempting points and fees from affiliated title charges and escrow charges for taxes and insurance from the QM cap on points and fees.
Huizenga commented, "The goal of H.R. 3211 is to help low- and middle-income borrowers as well as prospective first-time homeowners realize a portion of the American Dream: owning their own home." The legislation is backed by the National Association of Realtors, Mortgage Bankers Association, National Association of Home Builders, Real Estate Service Providers Council, and many other housing and mortgage trade organizations.