NAMB president testifies to Senate about modernizing FHA programs
Congress proposes amending Truth in Lending ActMortgagePress.comTruth in Lending Act amendments On July 12, the House of Representatives introduced legislation to amend the Truth in Lending Act. The primary objective of this legislation is to strengthen fair lending practices, with a focus on sub-prime lending. A second component of the legislation establishes a national licensing system for residential mortgage loan originators. Several key elements of this legislation include: • Pre-licensing education requirements, as well as testing requirements; • Continued education requirements for license renewal; • A registration system for registered loan originators, using a unique loan identifier for all loan originators; • The establishment and maintenance of a backup licensing system; • Additional disclosures to assist the borrower in comprehending the terms of a mortgage loan; • Recommended preliminary credit counseling for all borrowers; • Escrow or impound accounts for the payment of taxes and hazard insurance; • A limitation on pre-payment penalties for hybrid adjustable-rate mortgages; • The requirement of a written statement to inform the borrower of possible penalties for providing false or misleading statements; and • Borrower suitability guidelines. The bill is currently in committee. For more information, visit www.house.gov.