As I mentioned in my previous post, there are two bills in Congress today that could have a major impact on the way that mortgage loans are originated and sold across our market.
The first bill, HR 3915, The Mortgage Reform and Anti-Predatory Lending Act of 2007 was passed through the House on Nov 15, 2007 by a roll call vote of 291 Ayes, 127 Nays, 14 Present/Not Voting. The bill is sponsored by Rep Bradley Miller and co-sponsored by 27 others, including Rep Barney Frank.
Following introduction of the bill to the Senate on Dec 3 2007, Senator Chris Dodd introduced his own brand of mortgage reform legislation, The Homeownership Preservation and Protection act of 2007. On Dec 12, 2007, this bill was referred to the Committee on Banking, Housing, and Urban Affairs.
Both bills address many facets of the industry, to include compensation, licensing, regulatory governance, predatory lending and HOEPA triggers, appraisals and general due diligence. In reviewing each of the bills, I will explore some of the high points and comparisons between the two. Stay tuned – more to follow…
