Removing Barriers Blog

CUNA and Trades Write to Senate Leadership in Support of H.R. 1153, The Mortgage Choice Act
Posted August 29, 2018 by CUNA Advocacy

CUNA joined other trade associations in sending a letter to Senate Leadership to ensure regulatory relief language remains in the conference committee version of the 2019 FSGG Appropriations bill.  The signers called for the bill to retain the text of the H.R. 1153, Mortgage Choice Act, a bipartisan bill that has passed the House in February and is consistent with CUNA’s Campaign for Common-Sense Regulation.

Specifically, H.R. 1153 would make minor adjustments to the Truth in Lending Act definition of "points and fees" to ensure greater consumer choice.

“H.R. 1153 endeavors to restore a full and open competitive market by clarifying the definition of fees and points,” the letter reads. “In doing so, the legislation will ensure consumers more choices in credit providers and settlement service options.”

The Truth in Lending Act specifies that, in order to count as a Qualified Mortgage, points and fees cannot exceed 3% of the loan amount. Under current law and rules, a “point” or “fee” can vary depending on who is making the loan and what arrangements the borrower makes for title insurance.

The language is part of the House FSGG bill, H.R. 6258, which passed the House in July. The Senate passed its FSGG bill in August without the text of H.R. 1153, but with full allocation levels to several important credit union funds.