FAMB Government Affairs Update
Government Affairs Past Year Summary as of Oct 16, 2006
Beginning with the end in mind, You will be reading this after
the November 7th 2006 Election and all will look different but as of
today Congress adjourned until Thursday November 9th,
2006 at 10am
Year of no action not all bad:
Other Legislative and Regulatory Issues which we hoped for action
have not gotten anywhere in Senate but have bills which passed on both
issues in house.
1. Small Business Health Plans – (S.
1955 and H.R. 525) - The Small Business Health Fairness Act and The Health
Insurance Marketplace Modernization and Affordability Act of 2005 are
Federal Legislation that passed the U.S. House of Representatives but
were not allowed to come to a vote in the Senate . Senator Nelson
spoke to keep this from coming to a vote. Help FAMB show Senator
Bill Nelson, who is running for office this year, that the mortgage industry
desires more options for health insurance and supports legislation which
would increase the number of Americans who have health insurance. It
won’t come up until after mid term elections. All are back in session
and if you have not contacted your senator this is something you could
do now. To contact your U.S. Senator, please click here…
2. FHA Reform Housing Bill
The U.S. House of Representatives previously passed H.R. 5121 however
the U.S. Senate wants more information and review. The Senate
needs to act and the differences between the bills worked out in conference.
Our NAMB Government affairs Chair met with HUD FHA and they are working
on solution to allow Brokers access to FHA with reduced audit requirements
and Net worth requirements through a sponsor relationship like VA?
Watch for more info Senate adjourned with no action will come up after
Nov. 9th. 2006
- Predatory Lending, Emerging issues, Licensing and Continuing
Education. Which Chapters are actively approaching affordable
housing in your community and Emerging markets for minority groups
that are expanding in your markets. What are you doing? How can we
tighten our profession with professionalism through licensing and
continuing education requirements?
- Florida Elections? On November 7th Get your
FAMB We VOTE Pin and attend a Elections
Party in your area, PAC has given our 2nd phase of checks to candidates?
Watch for PAC Report in your chapters.
- NAMB Government Affairs’ Chair Joe Falk report
to NAMB and Report
on Pre-screening and Triggering which is stand NAMB has taken
to stop this activity by the Repositories. This is a major position
by NAMB. Go to link clicking on name.
Items of no action:
1. RESPA Reform
Proposals from HUD – All is still quiet on the issue
of RESPA however, in an effort to be pro-active, NAMB has prepared
and submitted to HUD a one page Good Faith Estimate which is truly
a simplification of present disclosure. FAMB is continuing their
RESPA sub-committee, comprised of one member per chapter, so that we
are prepared for the time when it re-appears. RESPA Sub
Committee Set up with Chair Scott Tennell Sub-committee
developed a blue print to ACT when necessary
RESPA Sub Committee: Mission Statement:
- This committee will need to be prepared to meet if RESPA revision
comes from HUD to help us review and prepare our position with
the EC.
- This committee will need to have a plan to communicate and facilitate
Action on behalf of the FAMB, your chapter and our membership.
Hopefully this is only a inactive committee after this first meeting
but it is our emergency contingency for RESPA reform.
MBA dialogue produces sample Good Faith Estimates, 3 pages with a broker's
disclosure of YSP with out lender's disclosing YSP. To view NAMB's Comment
Letter & Proposed GFE, click
here
2. Reform of
Fannie Mae and Freddie Mac, also known as GSE Reform – H.R.
1461 and S. 190 Legislation may limit access by Mortgage Brokers to
Fannie Mae and Freddie Mac automated underwriting systems. Mortgage
Brokers rely on these systems to quickly assess a mortgage application
and provide consumers with mortgage credit. Treasury
Seeks Last-Ditch GSE Compromise The Treasury Department
has dropped its insistence on tough portfolio limits on Fannie Mae
and Freddie Mac in a last-ditch effort to forge a compromise and pass
a GSE regulatory reform bill this year. Treasury's new position
would allow the new regulator of housing government-sponsored enterprises
to decide (though a public rulemaking process) how large the portfolios
should be, based on safety-and-soundness concerns and avoiding system
risks, according to a Wall Street Journal report that MortgageWire has
confirmed with a Treasury official. "That is real movement by
Treasury," said mortgage industry consultant Howard Glaser. But
he said the systemic risk language could be "problematic" if
it implies that the portfolios should be shrunk. If there is any chance
of getting a GSE bill done this year, House and Senate banking committee
leaders have to agree on the outlines of a compromise before Congress
temporarily adjourns for the elections. That would allow staff and
principals to draft a final bill that the Senate could pass when it
returns for a lame-duck session and that the House could approve without
any changes.
3.Responsible Lending Act – (H.R. 1295) This legislation was
introduced by Reps., Bob Ney, R- Ohio, and Paul Kanjorski, D-Pa., to
protect consumers against predatory lending practices through revisions
to federal statutes affecting lenders, brokers and appraisers. There
are numerous proposals and there are committees such as following looking
into this:
Hearing looks at non-traditional mortgage risks—Risks associated
with non-traditional mortgage products are the topic of a hearing
by the Senate Banking subcommittees on housing/transportation and economic
policy. Government Accountability Office Director Orice Williams is on
the first panel of witnesses, along with officials from the Office of
the Comptroller of the Currency, Federal Reserve, FDIC and the Office
of Thrift Supervision. The second panel will include mortgage and consumer
organizations, including the Mortgage Bankers Association, National Association
of Mortgage Brokers, Mortgage Insurance Companies of America, Center
for Responsible Lending and Consumer Federation of America.Google Alert
for: mortgage fraud Key
to ruin
Daytona Beach News-Journal - Daytona,FL,USA
... But borrowers also fall victim to predators. Last year,
the FBI singled out Florida as one of the top 10 states plagued by rampant mortgage fraud. ...Fighting
foreclosures
Charlotte Observer - Charlotte,NC,USA
... legislative committee on Tuesday that his office needs
the names of mortgage brokers and other loan originators to
investigate mortgage fraud and resulting ...
4. BROKERS BEWARE If trend becomes law Your liability insurance
could take big jump!!!
Trend Said to Favor Fiduciary Duty for Brokers
The trend among regulators in states such as New York, New Jersey, Ohio,
and others is to make the mortgage broker, in essence, have a fiduciary
duty to the borrower, according to E. Robert Levy, executive director
of the New Jersey Association of Mortgage Brokers. Speaking at the group's
annual convention in Atlantic City, Mr. Levy said the burden would therefore
rest with the mortgage broker to select the loan product for the consumer.
As a result, the mortgage broker could be held liable for making the
wrong choice. He said consumer advocates are in favor of this position.
Mr. Levy, who is also chairman of the advisory council of the American
Association of Residential Mortgage Regulators, said it became clear
in a meeting of that council that regulators were enamored with the "suitability
test." However, Mr. Levy reminded the audience of New Jersey's experience
with the original version of its predatory lending law, which contained
a "net tangible benefits" test. That test closed the secondary
market for loans in the state, and was eventually removed from the law.
Paul Halter and Ben Bishop serve on a Predatory Lending panel assembled
by a local Legislator and state Senator. This word Fiduciary
Duty came up there from the ACORN representative talking about
Predatory and Legal aid folks want Fiduciary Duty for
Brokers also? Wonder what that does with our Fiduciary to the Lender
we represent? or maybe we need to be NON AGENCY like the Realtors? or
we could be Agency if we represented only the borrower to the exclusion
of the lender? What would Loan Officers do if only representing one Bank?
Well I am confused now? We are keeping an eye on legislation because
we do not think Fiduciary Duty is a Broker only issue and would oppose
any attempt to include such languare in any legislation.
Hope you
VOTED Nov 7th and attended Candidate parties.
