The White House and Current Mortgage Reform Legislation - Part 1
Filed under: HR 3221, HR 5830, Mortgage Industry Legislation — admin @ 11:04 am
The two most relevant pieces of mortgage reform legislation to date are: FHA Housing Stabilization and Homeownership Retention Act of 2008 (H.R. 5830) and The Foreclosure Prevention Act of 2008 (H.R. 3221). It is understood that HR 3221 will be amended on the Senate floor to include some controversial provisions from S 2636 put forth by Majority Leader Reid.
The Administration has indicated what they will and will not support. Text of the White House response on mortgage reform legislation from 02/28/08 is here.
The Bush Administration has indicated that they understand that HR 3221 will be amended on the Senate floor to include some text from S 2636 and it is the White House’s position to oppose and veto such legislation if passed.
The White House is in favor of the following:
- Modernizing FHA: FHA SECURE
- Hope Now Alliance whose Mission Statement is to “Maximize the preservation of homeownership while minimizing foreclosures. Assist borrowers who have the willingness and wherewithal to remain in their homes, but need some help to do it. Our goal is to keep people in their homes and when that is not possible, prevent foreclosure.”
- Reformation of regulatory oversight of GSE’s
- Increased funding for housing counseling
- RESPA reform – no details, just RESPA reform
- Authorizing the FRB to implement their Blueprint to improve mortgage disclosure requirements
- Developing of new standards for deceptive and unfair trade practices under HOEPA authority
- The FRB developing regulations to manage underwriting standards and criteria
To be continued…
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