HR 3915- Follow-Up to Mortgage Reform Bill

House Approves Major Mortgage Reform Bill

This short synopsis is a follow-up of my post last week on Congress’s move to curb what they term as Predatory Lending Practices.  These paragraphs summarize key points of the Bill.

On Thursday, November 15, the House of Representatives approved H.R. 3915, the “Mortgage Reform and Anti-Predatory Lending Act of 2007,” by a vote of 291-127. If enacted, this legislation would fundamentally change mortgage practices in several areas: establish a federal duty of care in offering mortgage products; require licensing of all mortgage originators; prohibit steering; create an ability to repay standard: lower HOEPA triggers; attach limited liability to secondary market securitizers; and require an escrow account for some first-lien mortgages in certain circumstances. Prior to floor action, the Mortgage Bankers Association sent a letter to the House Leadership expressing serious concerns with this bill.

While the bill is intended to improve several areas of the mortgage market,    H.R. 3915 will greatly limit the availability of credit and will prevent many qualified Americans from becoming homeowners. On Wednesday, November 14, the Bush Administration issued its Statement of Administration Policy. Although the Administration supported several key goals of H.R. 3915, it believed this legislation would restrict credit for potential homebuyers and limit refinancing options for current homeowners. Action now moves to the Senate where Banking Committee Chairman Christopher Dodd (D-CT) is preparing to introduce his own reform package.If you desire any further information regarding this Bill, please go to www.namb.org to search for more information.

If you are in California and looking for mortgage assistance, please feel free to call me Toll Free at  1-800-720-2279 or visit my website at http://ocmortgagefinder.com/index.htm