Current Federal Issues
This bill corrects the math formula that causes the customers of mortgage brokers to have a lower cap on the amount of money they can elect to use to purchase loan features, including interest rate buydowns or mortgage insurance for a higher LTV. This particularly puts lower income customers of a mortgage broker at a disadvantage over other lending channels as this issue accelerates as loan amounts decrease below roughly $125,000. This correction does not increase the cost to borrowers, income to brokers or the cost of a mortgage. It simply corrects the math formula used to calculate the maximum amount a consumer can elect to spend so that the formula matches the formula used for mortgage bankers and depository institutuions.
In a December 2015 meeting with CFPB Director Cordray, NAMB offiers were told that CFPB recognizes this issue but they do not have the power to correct it, the fix is legislative.
HR 3393 Text
HR 3393 Status
HR 3393 Co-Sponsors
HR 3393 NAMB Talking Points
2016 - Association of Texas Mortgage Professionals