AP reports: Mortgage brokers spent $1.1 million lobbying government in Q2 of 2009

In an August 17 story by the The Associated Press (AP), it has been stated that the National Association of Mortgage Brokers (NAMB) spent nearly $1.1 million in the second quarter to lobby on regulations for home appraisals and laws governing the information disclosed when borrowers take out a home loan, according to a recent disclosure form. Brokers have been on the defensive since the housing bubble burst, and have been blamed for making risky loans to borrowers who were unable to afford them. NAMB, the McLean, Va.-based trade association has been arguing that new rules for the appraisal process are causing delays in closing sales because botched appraisals are coming in too low. The rules, which went into effect May 1, bar mortgage brokers from ordering appraisals themselves, forcing them to do so through a mortgage lender. President Barack Obama's plan to overhaul financial regulation, unveiled this summer, would create a new agency to monitor consumer financial products and revamp the entire home loan process, including limiting fees tied to higher mortgage rates. Mortgage brokers argue such fees are a legitimate way for borrowers to afford a loan without having to come up with thousands of dollars in closing costs, because the fees can be spread over the life of a loan. So far this year, the mortgage brokers group has spent about $1.5 million on lobbying. Besides lawmakers, the group lobbied the Federal Reserve, Federal Trade Commission and Department of Housing and Urban Development, according to the form filed July 20 with the House clerk's office. For more information, visit www.namb.org.