november 2007
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TABLE OF CONTENTS
* MBA: HR 3915 will
Hurt More Consumers than It will Help
*
NAMB: HR 3915 Passed in the House of
Representatives 291-127
*
MBA: Bankruptcy
Reform Legislation will Cost Consumers
*
Ring in Your Holidays with Us: MBBA-NH
Holiday Party
*
SAVE THE
DATE for New Hampshire Mortgage Conference:
February 6 and
7, 2008
*
NAMB Launches Lending Integrity Seal of Approval
*
MBA SVP &
Chief Economist Doug Duncan's Slide Presentation
from
State and Local Conference in October
*
Programs Scheduled
MBA's
Quinn: HR 3915 will
Hurt More Consumers than It will Help
Washington, DC (November 15, 2007)
- Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers
Association (MBA) today issued the following statement,
following passage in the House of Representatives of H.R.
3915, the Mortgage Reform and Anti-Predatory Lending Act of
2007. The bill passed the House by a vote of 291-127.
"Have no doubt, this bill will limit credit availability and
options for thousands of Americans who want to grab their
share of the American dream of homeownership. It will
eliminate tools that millions of Americans have used to
become successful long-term homeowners.
MBA has worked tirelessly with Chairman Frank and other
House members to try and address our concerns with the bill
and make it a better overall product. Much has changed to
improve the bill, including an amendment that passed today
to exempt loans insured by the Federal Housing
Administration from the bill. Unfortunately, many of our
key concerns have not been addressed.
It still allows for the patchwork of state laws that serve
to foster confusion for lenders and borrowers alike. Its
rebuttable presumption provisions still expose lenders to
unacceptable liability risk. It creates ambiguity around
the legitimate payments between secondary and primary
mortgage markets that increase the flow of capital to
homeowners. And the lowered HOEPA triggers will most
assuredly eliminate mortgage products that have worked well
for many borrowers.
I regret that we cannot support this bill."
The Mortgage Bankers Association (MBA)
is the national association representing the real estate
finance industry, an industry that employs more than 500,000
people in virtually every community in the country.
Headquartered in Washington, D.C., the association works to ensure the
continued strength of the nation's residential and
commercial real estate markets; to expand homeownership and
extend access to affordable housing to all Americans. MBA
promotes fair and ethical lending practices and fosters
professional excellence among real estate finance employees
through a wide range of educational programs and a variety
of publications. Its membership of over 3,000 companies
includes all elements of real estate finance: mortgage
companies, mortgage brokers, commercial banks, thrifts, Wall
Street conduits, life insurance companies and others in the
mortgage lending field. For additional information, visit
MBA's Web site:
www.mortgagebankers.org.
HR
3915 Passed in the House of Representatives 291-127
Success! YSP PRESERVED. Today, the U.S. House of
Representatives passed the final version of H.R. 3915, the
"Mortgage Reform and Anti-Predatory Lending Act of 2007" on
a vote of 291 to 127. This bill includes three important
provisions that offer effective consumer protection without
favoring any market competitor:
-
A
National Registry of All Mortgage Originators --
Mandating an all-originator national registry will be
the most effective protection consumers will have
against bad actors in this industry. Its all-inclusive
national scope means mortgage originators, even those at
banks and lenders, who break the law, cannot move from
state to state or from one company to another without
being detected.
-
Enhanced Professional Standards for All Mortgage
Originators - The bill as passed puts in place criminal
background checks, fingerprinting, education and
pre-licensure testing for all mortgage originators
regardless of where they work. However, loan officers
and employees of federal-depository institutions only
need to be part of the national registry system and do
not need to comply with this bill's enhanced education
and testing standards.
-
Preservation of Mortgage Originator Compensation and
Consumer Financing of Points and Fees - The original
bill called into question the legitimate payment of the
Yield Spread Premium, as well as the consumer's option
to finance points and fees into the loan (or obtain a
no-cost loan). Working with House Financial Services
Committee Chairman Rep. Barney Frank (D-MA) and
Representative Gary Miller (R-CA), NAMB was able to
obtain clarifications that preserves the ability of
consumers to finance origination fees, points and other
closing costs into the loan rate or amount, and
preserves the ability of mortgage originators to receive
payment in such cases.
These provisions not only
represent major victories for NAMB and for every mortgage
originator, they are also victories for the consumers we
serve. We commend Rep. Barney Frank (D-MA), Chairman of the
House Financial Services Committee, and Rep. Spencer Bachus
(R-AL), the Ranking Member of the Committee, for their
leadership.
However, there are some provisions in the bill which NAMB
did not support. These are located in Title III. We believe
these provisions will have a broad and negative impact on
the availability and affordability of all credit, and its
effects will be felt most harshly by those with imperfect
credit histories, even current borrowers who may seek to
obtain a mortgage loan to refinance their home and resolve
payment issues.
Meanwhile, the debate rages on in
Washington!
The
debate in the U.S. House of Representatives is over. Now,
the Senate is considering FHA reform, and a bill on mortgage
reform is expected any day. Industry eagerly awaits the
release of HUD's new Good Faith Estimate and other aspects
of RESPA reform. The Federal Reserve Board is also expected
to release new regulations addressing unfair and deceptive
acts and practices.
NAMB's leaders
are working hard everyday to represent and defend our
industry, and communicate our positions and policies with
lawmakers and the media. This alert was sent to you as a
NAMB member, to keep you informed of our progress. Please
continue to look for more alerts in the days, weeks, and
months ahead. Since
you may receive this alert before the related news story is
published, NAMB is unable to link you to the final news
story. We encourage you to check the media outlet's
website mentioned in this alert to see how the story
appears.
MBA's
Kittle: Bankruptcy Reform Legislation Will Cost Consumers
 Washington, DC (October 30, 2007)
- David G. Kittle, CMB, Chairman-elect of the Mortgage
Bankers Association (MBA) testified today before the House
Judiciary Committee's Subcommittee on Commercial and
Administrative Law.
In his testimony, Kittle told the committee that proposed
legislation to reform the bankruptcy code and allow judges
to "cramdown" debt on primary residential mortgages will
impose significant costs on consumers by restricting the
flow of capital into the mortgage market and increasing the
price tag on all mortgages.
"If you chip away at the security created on home
mortgages-and this bill is not a small chip, it is a
sledgehammer attack-you chip away at the entire core of the
mortgage finance system," said Kittle. "In order to account
for the added risk you will add significant costs to
obtaining a mortgage. If this bill becomes law, we
believe mortgage rates would jump significantly, going up 1½
to 2 points for everyone taking out a loan."
Today's hearing focused on H.R. 3609, the Emergency Home
Ownership and Mortgage Equity Protection Act of 2007. H.R.
3609 would allow judges under Chapter 13 bankruptcy
proceedings to unilaterally mark down the value of a primary
mortgage from its full amount down to the fair market value
of the home. The bill would also give judges free reign to
change the other terms of the loan, including the interest
rate or the length of the loan.
"What does that mean?" asked Kittle. "Assume you take out a
30 year fixed rate mortgage loan for $300,000 in today's
market. If you are a prime borrower you will receive a rate
of about 6% with no points, giving you a principal and
interest payment of about $1800 per month."
"If you pass this bill we estimate that the same loan with
the same terms could cost as much as 8%," continued Kittle.
"That increases your payment to about $2,200 per month.
This will be an increase of $400 per month, $4,800 per year,
for a total of over $144,000 over the life of the loan. This
is a massive back-door tax increase on homeowners."
A full copy of Kittle's prepared testimony can be found on
www.mortgagebankers.org.
The Mortgage Bankers Association (MBA)
is the national association representing the real estate
finance industry, an industry that employs more than 500,000
people in virtually every community in the country.
Headquartered in
Washington, D.C., the association works to ensure the
continued strength of the nation's residential and
commercial real estate markets; to expand homeownership and
extend access to affordable housing to all Americans. MBA
promotes fair and ethical lending practices and fosters
professional excellence among real estate finance employees
through a wide range of educational programs and a variety
of publications. Its membership of over 3,000 companies
includes all elements of real estate finance: mortgage
companies, mortgage brokers, commercial banks, thrifts, Wall
Street conduits, life insurance companies and others in the
mortgage lending field. For additional information, visit
MBA's Web site:
www.mortgagebankers.org.
Ring in Your Holidays with Us:
MBBA-NH Holiday Party
 We
invite you to come and enjoy the holidays with your friends
and colleagues at MBBA-NH's most popular social event of the
year: MBBA-NH holiday get-together on Wednesday,
December 5, 2007!
This year's holiday party
will take place at the Manchester Country Club, 180 South
River Road, Bedford, New Hampshire, from 5:30 P.M. to 9 P.M.
There'll be lots of appetizers, carving stations, desserts, and a cash bar.
You can dance the night away to
classic rock music, performed by One Fine Mess.
Phenix Title is sponsoring 100 drink tickets.
THANK YOU!
Please
share your cheer with a needy child by bringing an unwrapped
toy for the U.S. Marine Corps' "Toys for Tots" campaign.
Click here
for more
information and to register and pay online.
Save the Dates of
Wednesday, February 6 and Thursday, February 7, 2008, for
New Hampshire Mortgage Conference
 The New Hampshire
Mortgage Conference is rapidly approaching! Take out
your brand new 2008 calendar right now and mark down February
6 and 7, 2008.
We promise you a
conference that will ignite the fire in your belly so that
you'll be ready to begin the new year with a spark! This year's
conference theme is "Motivated and Moving Forward . . ."
The conference
begins on
Wednesday afternoon with two speakers. Brian Koss of
Mortgage Network will give us an historical perspective of
today's real estate market and what we should expect in the
future. The other speaker, Keni Thomas, a former United States
army ranger, will share his harrowing experience in Somalia when his
black hawk helicopter went down and was ambushed. Keni talks about how his training in the army and
teamwork with his fellow soldiers helped him survive the
ordeal.
Keni Thomas
The marketplace reception
is scheduled to take place on Wednesday night,
immediately following the afternoon speakers.
At the marketplace you'll learn about the latest mortgage products and services.
Enjoy heavy hors D'Hoevres, cash bar, music, prizes,
camaraderie, and fun!
The next day is Thursday.
Fine tune
your mortgage finance knowledge by attending a full array of
educational sessions. Some sessions offered are:
economic update, reverse mortgages, appraisals in a
declining market, advanced credit issues, effects of recent
natural disasters on flood and home owners insurance, FHA,
etc.
 Wrapping up
the conference on Thursday afternoon is another motivational
speaker. You will meet an
amazing young man, a gifted athlete, who was at the wrong
place and time while playing his first hockey game in
college. After eleven seconds on the ice, he became the
unwitting victim of an accident that left him a
quadriplegic. Travis Roy’s story is unforgettable! You
will learn how he survived and successfully overcomes life’s
struggles everyday with optimism and grace.
Please click here for information
on the conference for sponsors and exhibitors.
Registration forms for attendees
will be mailed in December. In the meantime, if you
have any questions about the conference, please contact the
MBBA-NH office.
Travis Roy
NAMB Launches Lending Integrity Seal of Approval
 MBBA-NH
Board Member, Jon Wentworth, President of Profile Mortgage,
LLC located in Nashua, NH recently attended the National
Association of Mortgage Brokers (NAMB) West Convention in
Las Vegas.
At the conference NAMB introduced the Lending Integrity Seal
of Approval. The seal is designed to help consumers
identify individual mortgage brokers and loan officers who
meet the industry's highest standards for knowledge,
professionalism, ethics and integrity.
"This is the first voluntary, national standard for
individual mortgage brokers and loan officers, and it goes
well beyond what many states require," said NAMB President
George Hanzimanolis. "The Lending Integrity Seal of
Approval is a bold step we are taking to transform our
industry by helping consumers identify mortgage
professionals who meet the highest ethical and professional
standards."
 To
earn the right to display the Lending Integrity Seal of
Approval, a mortgage broker or loan officer must:
·
Be a member of NAMB
·
Possess a current state-issued mortgage license or registration
·
Submit three business references
·
Pass a national criminal background check
·
Attend professional education training, including ethics training
·
Adhere to NAMB's Code of Ethics and Standards of Best Business
Practices
·
Abide by NAMB's formal ethics grievance review process
"NAMB is proud to have developed the most stringent code of
ethics in the industry," Hanzimanolis said. "This program
builds upon NAMB's past and ongoing efforts to protect
consumers and to promote professionalism throughout our
industry."
Wells Fargo Home Mortgage one of the country's leading
mortgage lenders, has already issued a statement commending
NAMB on setting this new standard.
"Wells Fargo supports industry actions taken on behalf of
the consumer, and NAMB's Lending Integrity platform stands
out as such because it provides a high national standard for
mortgage brokers and their loan officers," said Mike Lepore,
Executive Vice President, Wells Fargo Home Mortgage,
Institutional Lending. "NAMB has exhibited true leadership
by announcing a platform that will encourage integrity as a
part of the origination process for any of its members.
Wells Fargo is honored to have worked with NAMB to help
develop the Lending Integrity platform and looks forward to
continued collaboration."
The Lending Integrity program will be made available to
mortgage brokers and loan officers through state mortgage
associations affiliated with the National Association of
Mortgage Brokers. The public should begin to see the Lending
Integrity Seal displayed in advertisements and by
professional mortgage originators who meet the Lending
Integrity criteria, sometime in early 2008.
More information on the Lending Integrity Seal of Approval
is available at
http://www.lendingintegrity.org/.
The main focus of the conference was to introduce the
“Lending Integrity Seal of Approval” and review pressing
legislative and regulatory concerns. Jon Wentworth sits on
the NAMB Delegate Council. To learn more about the National
Association of Mortgage Brokers visit the associations’
web-site at
http://www.namb.org/namb/Default.asp.
 d1
MBA SVP & Chief Economist Doug Duncan's
Slide Presentation at State and Local Conference in October
Programs Scheduled
December 5, 2007 - Annual Holiday Get-Together at
the Manchester Country Club, 180 South River Road, Bedford,
New Hampshire, from 5:30 P.M. to 9:00 P.M., benefiting the
U. S. Marine Corps' Toys for Tots.
Entertainment by One Fine Mess. Put your
dancing shoes on for this annual, very popular party!
Click here for more information.
January 2008 - Legislative Update with the
National Association of Mortgage Brokers (NAMB) Legislative
Chair Denise Leonard (national) and MBBA-NH Lobbyist
Jim Demers (state). More information to come.
February 6 and 7, 2008 - Annual Mortgage
Conference at the Radisson Hotel, 700 Elm Street,
Manchester, New Hampshire. Great educational sessions,
lots of networking opportunities, economic update,
entertainment, motivational speakers, marketplace with
exhibitors, etc. Mark your calendars with these dates.
Click here for information on exhibiting and sponsoring.
Registration forms for attendees will be available in
December. |
