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NAMB issues Call to Action on CFPA amendments

Oct 15, 2009

Take action now! Call your House Financial Services Committee representative and ask him or her to support the following three amendments to HR 3126, the “Consumer Financial Protection Agency Act of 2009.” This bill is currently being considered by the House Financial Services Committee. 1. An amendment nullifying the Home Valuation Code of Conduct (HVCC) to undergo federal rulemaking is being offered by Reps. Childers, Miller, Manzullo and Bachmann. The HVCC is an agreement between the New York Attorney General, Freddie Mac and Fannie Mae and administrative agency of the federal government, the FHFA that has dramatically damaged the home mortgage process across the nation. 2. The second amendment, which may be offered by Rep. Judy Biggert, would require the U.S. Department of Housing & Urban Development (HUD) to provide for a more gradual implementation period for its Real Estate Settlement Procedures Act (RESPA) rule. HUD issued their regulation without regard to conflicts with the Federal Reserve Boards’ Truth-in-Lending Act (TILA) rules. This amendment would require HUD and the Federal Reserve to coordinate their regulatory efforts to ensure comparable RESPA and TILA disclosures. 3. Lastly, an amendment offered by Rep. Gary Miller would require even handed treatment between types of companies offering mortgages or other products. HR 3126 imposes duties on covered persons and their agents and employees to ensure fair dealing with consumers in financial transactions. Such rules may establish duties regarding compensation practices and specifically prohibits the CFPA from capping the amount of compensation paid to any person. The amendment clarifies that the CFPA, in rulemaking, does not pick winners and losers that are offering the same mortgage product to consumers. The amendment ensures that there is no disparate treatment among industry participants whether they are federally chartered or state chartered, big or small.   Click here for a list of HFSC member and staff contact information. For more information, visit NAMB.org.
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Oct 15, 2009
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