Like Countable?

Install the App
TRY NOW

house Bill H.R. 685

Changing how Points and Fees are Calculated and Applied for Qualified Mortgages

Argument in favor

Improves access to credit and qualified mortgages for low- and middle-income borrowers. More people would have access to a qualified mortgage, and this would in turn, be a step toward the revitalization of the U.S. housing market.

klr's Opinion
···
04/17/2015
If a house is still going to be a part of the American Dream, let's make it more of a reality
Like (4)
Follow
Share
Dean's Opinion
···
04/15/2015
We will never get the economy on the right road without the housing market having a banner year. Rents are increasing monumentally, and the middle class cannot save.
Like (4)
Follow
Share
Elinor's Opinion
···
04/16/2015
People who default on home buying need to pay attention. Don't blame the lending institutions for individuals' ignorance.
Like (3)
Follow
Share

Argument opposed

This bill weakens mortgage reform, undermines consumer protection, and incentivizes lenders to steer families into high-risk, high-fee loans that they don't understand and can't afford, effectively recreating one of the catalysts for the 2007-08 financial crisis.

Clark's Opinion
···
04/16/2015
Bring back the Glass-Stegal Act. It worked flawlessly for 75 years.
Like (5)
Follow
Share
Don's Opinion
···
04/17/2015
Remember this "loose lending" was the root of The Great Recession we FINALLY just got out of !!!
Like (3)
Follow
Share
Annette's Opinion
···
04/18/2015
We don't need another crash in this country.
Like (3)
Follow
Share

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
  • The house Passed April 14th, 2015
    Roll Call Vote 286 Yea / 140 Nay
      house Committees
      Committee on Financial Services
    IntroducedFebruary 3rd, 2015

Log in or create an account to see how your Reps voted!

What is House Bill H.R. 685?

This bill would amend the Truth in Lending Act to change the definition of "points" and "fees" and how they’re applied to qualified mortgages under the Consumer Financial Protection Bureau (CFPB) regulations.


For those of you who don't have a mortgage: Under the CFPB, a "qualified mortgage" has facets that make the loan more affordable for borrowers, because those borrowers have demonstrated in one way or another that they can repay the loan. As the CBO explains in an analysis of this bill: 

"Certain costs that are incidental to the loan amount and are paid by the borrower — for example, title insurance fees, guarantee fees, and service charges — are limited to no more than 3 percent of the total loan amount." 

This bill would remove from that 3 percent limit calculation (the points and fees that we mentioned before): insurance premiums held in escrow, sometimes creditor company (or mortgage originator) fees, and loan level price adjustment payments set by Fannie Mae, Freddie Mac, the Federal Housing Administration, or other related government sponsored enterprise. 


Within 90 days after this legislation’s enactment the CFPB would issue final regulations to carry out the amendments in this bill, which would be effective upon issuance.

Impact

Low- and middle-income borrowers seeking to buy a house via a qualified mortgage, mortgage loan originators, U.S. banks, and the Federal Housing Administration.

Cost of House Bill H.R. 685

$0.00
A CBO cost estimate found that the spending associated with implementing this bill would have an insignificant impact on federal spending or the nation's budget.

More Information

In-Depth:

A previous version of this bill was introduced in the House with bipartisan support in September 2013. It passed the House with a voice vote, but stalled in the Senate.


Of Note:

Sponsoring Rep. Bill Huizenga (R-MI) said that his bill “is narrowly focused to promote access to affordable mortgage credit without overturning the important consumer protections and sound underwriting required by Dodd-Frank’s ‘ability to re-pay’ provisions.”


In an op-ed, Sen. Elizabeth Warren (D-MA) and Rep. Maxine Waters (D-CA) claimed that this bill would “re-create incentives to steer families into high-risk, high-fee loans they do not understand and cannot afford.”


Media:

Sponsoring Rep. Bill Huizenga (R-MI) Press Release

CBO Cost Estimate

Housingwire

Op-Ed by Sen. Elizabeth Warren (D-MA) and Rep. Maxine Waters (D-CA) (Opposed)

Americans United for Change (Opposed)

Credit Union Times (In Favor)

National Association of Realtors (In Favor)


Summary by Eric Revell

(Photo Credit: Flickr user adam wiseman

AKA

Mortgage Choice Act of 2015

Official Title

To amend the Truth in Lending Act to improve upon the definitions provided for points and fees in connection with a mortgage transaction.

    Just say no to higher bank fees.
    Like (5)
    Follow
    Share
    Bring back the Glass-Stegal Act. It worked flawlessly for 75 years.
    Like (5)
    Follow
    Share
    We will never get the economy on the right road without the housing market having a banner year. Rents are increasing monumentally, and the middle class cannot save.
    Like (4)
    Follow
    Share
    If a house is still going to be a part of the American Dream, let's make it more of a reality
    Like (4)
    Follow
    Share
    Remember this "loose lending" was the root of The Great Recession we FINALLY just got out of !!!
    Like (3)
    Follow
    Share
    People who default on home buying need to pay attention. Don't blame the lending institutions for individuals' ignorance.
    Like (3)
    Follow
    Share
    The housing market is one of the key indicators of the economic recovery our nation is experiencing. Helping low and middle income class citizens will in turn facilitate this.
    Like (3)
    Follow
    Share
    We don't need another crash in this country.
    Like (3)
    Follow
    Share
    We learned in 2008 that such practices can be dangerous over time.
    Like (2)
    Follow
    Share
    I'm all for the free market and the voluntary contract between a lender and borrower, so the government shouldn't try to incentivize companies to lend more to families with bad credit history. We all have seen in the past how this terrible lending policy leads to bubbles and then collapses. We have to forget about the concept that owning a home is the American dream and ideal lifestyle, because forcing this on low-income families with no steady income actually drives them further into poverty.
    Like (2)
    Follow
    Share
    Just look at the housing bubble pop! STOP helping those who can't, or won't, help themselves!
    Like (2)
    Follow
    Share
    I am a Realtor and see many people who should get a loan. Honest people.
    Like (1)
    Follow
    Share
    This is crap. This is the exact reason the housing market sucks today. People who shouldn't be eligible for a morgage were given an exeption then, when they couldn't pay back the loan because they do not have the economical means to the list the house.
    Like (1)
    Follow
    Share
    Isn't this how we fell into the Great Recession less than a decade ago?
    Like
    Follow
    Share
    Repeal the mortgage deduction. It's a sap to home builders. They are no different than any other industry. Besides, it's unfair to renters.
    Like
    Follow
    Share
    Home ownership is not a prerequisite for financial success. Why dont they create these same standards for other common credit risks, cars, boats, credit cards etc that tend to weigh down consumers in the process of purchasing a home in the first place.
    Like
    Follow
    Share
    don't we have enough regulations as it is
    Like
    Follow
    Share
    Make residential rent payments tax deductible at the same rate as a mortgage payment. That's the single biggest thing congress could do to improve income inequality. And republicans shod get behind it as it "lowers taxes" even if is in a progressive way. And it doesn't run the risk of another housing crash.
    Like
    Follow
    Share
    Here we go again. I guess we have not learned our lesson.
    Like
    Follow
    Share
    If it is still the American Dream, then people should at least have a fair shot at achievement.
    Like
    Follow
    Share
    MORE