WASHINGTON—House members are being urged to support legislation that would reduce credit unions' and other financial institutions' regulatory burden and increase competition in the mortgage market.
NAFCU, CUNA and nine other trades representing the financial services and housing industries made the request in a letter to the House.
The Mortgage Choice Act (HR 1153), introduced by Reps. Bill Huizenga (R-MI) and Gregory Meeks (D-NY) would adjust Truth in Lending Act (TILA) mortgage rules by exempting from the qualified mortgage cap on points and fees any affiliated title charges and escrow charges for taxes and insurance.
In the letter, the trades highlighted that the bill's changes to TILA would "ensure greater consumer choice in mortgage and settlement services under the Ability to Repay/Qualified Mortgage (QM) rule." They also explained current problems with the QM rule that have negatively impacted qualified borrowers.
A NAFCU witness testified before a House Financial Services subcommittee on housing finance reform in October and urged members to pass HR 1153 in order to foster competition in the mortgage market, NAFCU noted.
The bill passed out of committee in November and is expected to be considered by the full House this week. NAFCU said it will monitor the legislation and keep credit unions updated on its progress through the chamber.