Industry NewsMortgage

House OKs financial regulatory facelift

Consumer protection agency would draft new appraisal rules

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Legislation that would tighten federal regulation of financial institutions and create a new agency tasked with protecting consumers has passed the House of Representatives in a 223-202 vote.An amendment that would have stripped creation of the Consumer Financial Protection Agency from the bill was defeated, although industry groups are expected to continue lobbying against such an agency in the Senate.The Mortgage Bankers Association objected to the bill in part because the group wants uniform national standards for all lenders that preempt states from adopting their own, even more restrictive and potentially contradictory rules.While some financial industry groups are opposed to the creation of a Consumer Financial Protection Agency, real estate brokerages would be exempt from its oversight.Real estate and lending industry groups also back language in the bill that would give the new agency 60 days to implement uniform appraisal rules that would replace controversial procedures for a...