The House Financial Services Committee (HFSC) has approved HR 3126, the “Consumer Financial Protection Agency Act of 2009” by a vote of 39-29. The National Association of Mortgage Brokers (NAMB) commends and appreciates the participation of its membership in the Calls-to-Action by contacting representatives and urging them to vote for specific amendments to the bill. Two important amendments offered impacted the Home Valuation Code of Conduct (HVCC) and the Real Estate Settlement Procedures Act (RESPA).
NAMB is pleased to report that an amendment under the leadership of Rep. Gary Miller (R-CA) and Travis Childers (D-MS) and offered by Miller, Childers, Donald Manzullo (R-IL), and Michele Bachmann (R-MN) to sunset the HVCC and allow all loan originators, licensed or registered in accordance with the SAFE Mortgage Licensing Act, to order appraisals directly, was voted on and approved by the Committee to be included in HR 3126. Rep. Paul Kanjorski (D-PA) played an influential role in crafting the amendment as language included in the amendment is consistent with Kanjorski’s previously introduced appraisal independence language permitting brokers to order appraisals.
An amendment offered by Reps. Rueben Hinojosa (D-TX) and Judy Biggert (R-IL) to postpone the U.S. Department of Housing & Urban Development’s (HUD) RESPA Final Rule from the Jan. 1, 2010 implementation date, among other details, was not agreed to as there were some technical questions on the delay time of the rule. Chairman Barney Frank (D-MA) agreed to work with the bill sponsors as the bill moves to the House floor in the next few weeks. The revised amendment will permit either GFE form to be used--the present GFE or HUD’s new GFE – until July 1, 2010.
The Consumer Financial Protection Agency Act of 2009 is expected to be merged with a number of other regulatory reform bills before moving to the House floor for a vote including some previously House approved bills such as HR 1728, the “Mortgage Reform and Anti-Predatory Lending Act of 2009.” Companion legislation has not been introduced in the Senate although we expect to see such introduction in short time. Upon House and Senate approval of their respective regulatory reform bills, the bills may then be referred to a conference committee to resolve any differences in both bills. Once a compromise bill is agreed upon by a conference committee, it will be sent to the President to be signed into law. In the alternative, the Senate could approve a regulatory reform bill and then send it over to the House to approve. After which the final product will be sent to the President for his signature.
NAMB will continue to closely monitor this important legislation and update members going forward.
To track the progress of HR 3126, the Consumer Financial Protection Agency Act of 2009, click here.
For more information and updates, visit NAMB.org.