Government Affairs              
2017 Talking Points             

  • Correction to the 3% Qualified Mortgage Rule
    • The mortgage broker business model has a disadvantage due to the calculation of the 3% borrower closing costs rule.  The Qualified Mortgage rule was not intending to cap the fees paid to the originator by the lender, only by the borrower.  CFPB has even written about this problem, saying that they have done what they can with regulations, this requires a statutory fix.
  • Transitional License
    • Last year we opposed the Transitional License as it allowed people that had not passed the Federal Exam or the FBI Background check, to get a Transitional License for 120 days. Only about 50% of people pass the exam the first time, meaning that nearly half the people getting the Transitional License would fail to successfully transition to full license without a gap.  We believe that is misleading to the people trying to transition to licensing and unwise to subject the public to people that are not prepared.  The proposal has been modified and now requires the person transitioning to pass the Federal Exam and the FBI Background check before he/she can be issued a Transitional License.  We support the new proposal.
  • CFPB needs to give written guidance
    • Today, if you have a question about how a law or regulation applies to your specific circumstances, you can ask the Federal agency that regulates that issue to answer questions about how to handle your circumstances.  That agency must live by their answers.  The CFPB is not required to provide answers and in fact, when they speak at a public event they precede their remarks with a disclaimer that disclaims everything but their presence.  This proposal would require CFPB to anwser questions in writing and to live by their answers.  We support this proposal.  
  • Flood Insurance Reauthorization
    • The National Flood Insurance Program (NFIP) is subsidized by the Federal Government and if its funding stops, other Federal laws prohibit lenders from financing properties that are located in certain designated flood zones without flood insurance.  If the financing is halted, sales in coastal communities will halt and property values will plummet until cash buyers come into the market.  Millions of people would lose most of their wealth if this happens.  The National Flood Insurance Program needs to be re-authorized by September 30th, 2017.

(c) 2017 - Association of Texas Mortgage Professionals