Realtors® Applaud House Passage of Mortgage Choice Act
WASHINGTON (April 15, 2015) – The following is a statement by National Association of Realtors® President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark., in support of legislation to ease regulatory burdens on mortgage lending:
“The Mortgage Choice Act, which passed the U.S. House of Representatives last night with a bipartisan vote of 286-140, improves consumer access to mortgage credit with the full protection of the Ability-to-Repay and Qualified Mortgage rules that went into effect last year to safeguard borrowers from risky lending practices.
“As they are currently written, the consumer protection rules unfairly prevent consumers from obtaining QM loans through certain mortgage brokers and affiliated lenders whose joint venture services are collectively counted against a 3 percent cap on mortgage fees and points, although individual services from large retail financial institutions are each capped separately.
“The Mortgage Choice Act redefines the cap so that affiliated and non-affiliated service providers are treated the same way under the rule while still protecting borrowers from unsafe loan products.
“Realtors® will continue to advocate for this legislation to clarify the QM rules as it moves to the U.S. Senate.”