WASHINGTON (2/11/15)--CUNA is urging federal lawmakers to attach their support--and names--to a bill intended to "restore a full and open competitive market" by clarifying the definition of mortgage fees and points.
CUNA, with eight other financial, real estate and builder trade groups, is encouraging members of the U.S. House of Representatives to sign on as co-sponsors for The Mortgage Choice Act (H.R. 685).
The bill, identical to a version introduced and passed by the House in the 113th Congress, was reintroduced Feb. 3 by Rep. Bill Huizenga (R-Mich.). It already has bipartisan support of eight co-signers.
The Mortgage Choice Act addresses concerns CUNA raised with the Financial Services Committee during its June 2013 testimony examining how the Dodd-Frank Act hampers home ownership.
Specifically, it would remove confusion that exists about what constitutes a "fee" or a "point" that applies towards a statutory points and fees cap. The definition currently varies greatly depending upon who is making the loan and what arrangements are made by consumers to obtain title insurance, among other things.
By eliminating confusion, H.R. 685, CUNA and the coalition wrote in a letter to House lawmakers Tuesday, will ensure consumers have greater access to mortgage credit and also more choices in credit providers.