{"id":2103,"date":"2007-10-25T16:06:02","date_gmt":"2007-10-25T23:06:02","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2103"},"modified":"2007-11-15T12:55:29","modified_gmt":"2007-11-15T19:55:29","slug":"hr-3915-mortgage-reform-and-anti-predatory-lending-act-of-2007","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2103\/hr-3915-mortgage-reform-and-anti-predatory-lending-act-of-2007\/","title":{"rendered":"HR 3915: Mortgage Reform and Anti-Predatory Lending Act of 2007"},"content":{"rendered":"

Congressman Banker…err…Barney Frank co-authored legislation to “reform” the mortgage business on Monday.\u00a0 You can view the 66-page text here<\/a>.<\/p>\n

Bullet Points of the bill include:<\/strong><\/p>\n

1- Prohibition of “yield spread premium” as compensation to originators.<\/em><\/p>\n

2- Mandatory licensing of mortgage originators by a Federal registry or state regulator.\u00a0 This Bill does direct the Office of Thrift Supervision to establish a registry for bank employees who originate loans.<\/em><\/p>\n

3- Ability to repay the loan must be established.\u00a0 Limits on cash-out refinances and a determination of a net tangible benefit to the borrower will apply.<\/em><\/p>\n

4- Mandatory “pre-funding counseling” for certain “high-cost” loans by a certified HUD counselor.<\/em><\/p><\/blockquote>\n

You really must read this bill in its entirety.\u00a0 Hidden among the bowels of the bill is language specifically limiting interest rates to 1.75% over the “published market rate” for conforming loans.\u00a0 How can you determine a “market rate” if there are limits?\u00a0 That’s just a paradox.<\/p>\n

All of these proposed measures will be\u00a0more costly to the consumer and is a prime example of “Big Momma” acting as YOUR financial planner.\u00a0<\/p>\n

Yield spread premium is a very effective way to defray the up-front costs of a loan.\u00a0<\/p>\n

Mandatory licensing will\u00a0cause consumers to place undue trust in the “government-approved” originator.\u00a0 While I philosophically oppose any form of occupational licensing, I would support this mandatory licensing if it were unilaterally applied with testing of expertise.\u00a0 If the government is going to create a class of “loan agents”, they had better be qualified to effectively counsel consumers about how to use their mortgage as a financial planning tool.<\/p>\n

Government\u00a0regulated underwriting guidelines will contract the real estate market.<\/p>\n

Financial planning tips from a government agent?\u00a0\u00a0Seriously, does anyone else notice the irony<\/a> in this?
\n< ?PHP include(\"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/HR3915.php\"); ?><\/p>\n","protected":false},"excerpt":{"rendered":"

Congressman Banker…err…Barney Frank co-authored legislation to “reform” the mortgage business on Monday.\u00a0 You can view the 66-page text here. Bullet Points of the bill include: 1- Prohibition of “yield spread premium” as compensation to originators. 2- Mandatory licensing of mortgage originators by a Federal registry or state regulator.\u00a0 This Bill does direct the Office of […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-2103","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2176,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2176\/hr-3915-anti-consumer-bank-protection-act-of-2007\/","url_meta":{"origin":2103,"position":0},"title":"HR 3915: Anti-Consumer Bank Protection Act of 2007","author":"Brian Brady","date":"November 6, 2007","format":false,"excerpt":"HR 3915, the Anti-Consumer mortgage bill has passed the House Financial Services Committee. This was expected. The committee is chaired by the bill's sponsor, Barney Frank. This bill seeks to destroy the consumer protections, guaranteed by free markets, through: a legislated oligopoly, a reduction is loan choices, and a contraction\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11629,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11629\/originator-compensation-overhaul-to-cost-consumers\/","url_meta":{"origin":2103,"position":1},"title":"Originator Compensation Overhaul to Cost Consumers","author":"Brian Brady","date":"March 23, 2010","format":false,"excerpt":"I said\u00a0new legislation would\u00a0benefit mortgage brokers to the detriment of direct lenders.\u00a0 In the comments, I feared something insidious might happen (responding to Wayne Long): WAYNE: \u201cIt is interesting that the new rules benefit the broker vs. the direct lender\u201d BRIAN: It wasn\u2019t by design (which is why I expect\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12260,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12260\/how-mortgage-originators-will-be-compensated-by-borrowers-under-the-financial-regulatory-reform-act-of-2010\/","url_meta":{"origin":2103,"position":2},"title":"How Mortgage Originators Will Be Compensated By Borrowers Under The Financial Regulatory Reform Act of 2010","author":"Brian Brady","date":"June 14, 2010","format":false,"excerpt":"Want to \"finance your closing costs\" but are confused about the disparity in offered mortgage rates?\u00a0 You might have to thank the Financial Regulatory Reform Act of 2010 (H.R. 4173) for limiting your ability to structure your loan fees.\u00a0 Read pp 1486- 1490, specifically Section 9903 of the Bill; Prohibition\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8546,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8546\/the-end-of-no-cost-mortgage-loans-and-other-hr-1728-concerns\/","url_meta":{"origin":2103,"position":3},"title":"The End of No-Cost Mortgage Loans and Other HR 1728 Concerns","author":"Mark Madsen","date":"May 22, 2009","format":false,"excerpt":"The H.R. 1728: Mortgage Reform and Anti-Predatory Lending Act is a problem that all mortgage and real estate professionals need to pay attention to. My first rule of blogging has always been to avoid political discussions, especially if I'm not an expert on every angle of the topic. So, with\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1964,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1964\/can-the-nar-improve-a-buyers-financing-experience\/","url_meta":{"origin":2103,"position":4},"title":"Can the NAR Improve a Buyer’s Financing Experience?","author":"Brian Brady","date":"September 23, 2007","format":false,"excerpt":"Realtors have to stop complaining about the sorry status of the lending industry. Why? They have the power to make a difference but refuse to take action. I have often heard the Realtors' cry for licensing of loan originators and a plea for lending advisers to adopt a fiduciary capacity\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1204,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1204\/ask-the-broker-how-does-a-lender-ae-get-business-from-a-mortgage-broker\/","url_meta":{"origin":2103,"position":5},"title":"ASK THE BROKER: How does a Lender AE get business from a Mortgage Broker?","author":"Brian Brady","date":"March 24, 2007","format":false,"excerpt":"We received an inquiry today : I am a Wholesale Lending Account Executive and work for a bank. After the subprime market plummeted, it has been hard for me to get loans from mortgage brokers. What do you think is the best route to re-pump loans back in the pipeline,\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2103"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2103\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}