On May 7, 2009 the House of Representatives passed H.R. 1728, the “Mortgage Reform and Anti-Predatory Lending Act of 2009,” by a vote of 300 to 114. Prior to the vote, NAMB sent a letter to the members of the House of Representatives voicing its concerns with the bill. For a copy of the letter, click here. For a detailed summary of the bill, click here. For a full list of amendments and votes, click here.

Although the bill is not perfect, NAMB was able to secure several victories for consumers and mortgage brokers:

• RESPA Amendment: During the House Financial Services Committee (HFSC) markup, an amendment offered by Representative Judy Biggert (R-IL) and Ruben Hinojosa (D-TX) was accepted that would withdraw the Final RESPA Rule. The amendment was incorporated into H.R. 1728 and states that the Department of Housing and Urban Development (HUD) should work in conjunction with the Federal Reserve Board (Board) to develop and issue a new rule to address simplifying the mortgage process within six months of the passage of H.R. 1728.  This is a victory for NAMB as we have requested that HUD withdraw the RESPA Rule and work together with the Board to simplify the mortgage process in our comment letters, calls to action, and communications to Congress.
• Fiduciary Duty Amendment Withdrawn: During the HFSC markup, Representative Ellison (D-MN) was poised to submit an amendment calling for mortgage brokers to have a fiduciary duty. NAMB was victorious in alerting its Minnesota members of this potential amendment, and asked them to contact Representative Ellison and urge that it be withdrawn. The amendment was ultimately withdrawn before the House floor vote.
• HVCC Study: NAMB succeeded in getting language secured in the managers’ amendment which called for a study on the effects of the Home Valuation Code of Conduct (HVCC) on consumers and small business. NAMB made every effort to obtain a 12 month delay of the HVCC, however this study will more effectively illustrate the damaging effects the HVCC is having on consumers and the marketplace. Representatives Gary Miller (R-CA), Travis Childers (D-MS), Donald Manzullo (R-IL), and Michele Bachman (R-MN) all spoke out strongly against the HVCC and in support of the 12 month delay during markup of the bill.  If you have specific examples (including documentation) of ways the HVCC has affected you or your consumers, please forward this information with your name and contact information to hvcc@namb.org. NAMB is collecting this information at the request of the Federal Housing Finance Agency (FHFA).
• Indirect Compensation Language: We appreciate the work of Representative Gary Miller (R-CA) for his efforts to clarify and protect consumer financing options. We believe that it is important that legislation prohibit loan originators from being incentivized to push specific loan products based solely upon the compensation they are likely to receive.  We also strongly believe that any anti-steering provision will only be effective if its reach does not limit or remove financing choices from borrowers.  We have some concerns that the bill as amended does not preserve this important consumer choice and look forward to working with Chairman Barney Frank (D-MA) and Representative Gary Miller to ensure that consumers still have this option.  Consumer choice must be protected in order to maintain competition in the marketplace. When competition is eliminated, costs for consumers increase, and small business suffers.

NAMB will be working closely with members of Congress to further support and assist in mortgage reform and anti-predatory lending efforts. However, we need your help! Mortgage brokers must ban together now more than ever to face upcoming challenges. The battle will continue in the Senate, and a united front is our best defense against overreaching and detrimental legislative efforts. Please contact any non-members and ask them to Join NAMB Today! If you are already a NAMB member, Donate to NAMBPAC to support our numerous legislative activities.