NAR lobbies for ‘Mortgage Choice Act’ in support of affiliated lenders

Legislation would 'enhance competition' by putting smaller firms on a level playing field, trade group argues

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Inman Connect San Francisco, Jul 16-20, 2018

Stalled in Congress since 2013, an amendment to Dodd-Frank aimed at easing regulatory burdens against mortgage lenders was expected to go before the House Committee on Rules Monday with the full support of the National Association of Realtors (NAR). If passed later this week, House Resolution 1153, otherwise known as “The Mortgage Choice Act,” would amend rules that currently favor larger financial institutions over lenders affiliated with real estate companies, according to a letter sent by NAR to House representatives on Monday. Under the Qualified Mortgage (QM) rule, fees and points associated with a QM mortgage cannot exceed 3 percent of a loan amount. Affiliated businesses, however, are required to count more fees towards the 3 percent cap than larger unaffiliated financial institutions, the real estate group argued in the new missive. As defined by law, points and fees include fees paid to affiliated title companies, and insurance and taxes held in escrow, according...