Senate Committee passes Federal Housing Finance Regulatory Reform Act of 2008 MortgagePress.comFederal Housing Finance Regulatory Reform Act of 2008, Senate Banking Committee, Christopher Dodd, Richard Shelby, Rep. Spencer Bachus
The Senate Banking Committee passed the Federal Housing Finance
Regulatory Reform Act of 2008 today by a vote of 19-2. A summary of
the Manager's Amendment to the legislation, submitted by Committee
Chairman Sen. Christopher Dodd and Ranking Member Sen. Richard
Shelby.
Key points of the revised version of the bill would:
" Provide up to $300 in refinanced loans for troubled
homeowners;
" Establish a new fund to create affordable housing;
" Create a more powerful regulator to oversee Fannie Mae and
Freddie Mac.
House Financial Services Committee Ranking Member Spencer Bachus
applauded the inclusion of a national licensing system for mortgage
originators in the bill.
Bachus proposed a national registry to enhance accountability
and professionalism in the mortgage origination industry in
legislation (HR 3012) he first introduced last July. The provisions
were included in sub-prime lending legislation passed by the House
last November and in the Republican housing stimulus bill. The
language served as a model for the Secure and Fair Enforcement in
Mortgage Licensing Act introduced in the Senate by Sens. Mel
Martinez and Dianne Feinstein in February. A press release issued
by Senator Feinstein's office noted that "the legislation is
similar to HR 3012, introduced in the House of Representatives by
Representative Spencer Bachus."
Bachus said, "Elimination of unscrupulous brokers and lenders
from the mortgage market has been a goal since I first started
working on subprime lending issues three years ago. The licensing
and registration of mortgage originators will provide a major
protection for families seeking fair and equitable financing of
their most valuable asset. The inclusion of this title in the
Senate GSE bill is a much needed step towards enactment of this
important provision."
Creation of the registration system has been endorsed by
organizations including the National
Association of Mortgage Brokers and the Conference of State
Bank Supervisors. In a November 13, 2007 letter addressed to
Congressman Bachus, CSBS expressed its "strong support" for
provisions establishing national registration and licensing
standards for mortgage lenders and brokers.
"The bill gives the new regulator broad new powers that make it
vital that the regulator's three key deputy directors--those for
enterprise regulation, Federal Home Loan Bank regulation and
housing mission and goals--be subject to Senate confirmation.
Senate confirmation of these deputies would enhance transparency
and accountability at the new agency," said Camden Fine, president
and CEO of the Independent Community Bankers of America (ICBA).
"ICBA looks forward to working with Congress to include this
requirement in its final bill and to address other concerns of
community banks."
Full text of the Federal Housing Finance Regulatory Reform Act
of 2008 is available here.
