In this letter (2 pages), six consumer and civil rights groups ask Members of Congress to oppose H.R. 685, The Mortgage Choice Act of 2015. The groups argue that the bill would raise the cost of mortgages for millions of prospective homebuyers by allowing higher fees and creating a loophole in the landmark Dodd-Frank Wall Street Reform and Consumer Protection Act.
The groups state:
- H.R. 685 would unnecessarily raise the cost of mortgages
- H.R. 685 would allow high-cost loans to qualify as QM loans by creating exceptions to the points and fees threshold; the exception would exclude fees paid to certain title companies affiliated with the lender
- H.R. 685 weakens the QM standard established in Dodd-Frank
The full text of the letter provides more details into these arguments.