FEDERAL LEGISLATION
DFWAMB applauds the bipartisan effort of the new Responsible Lending Act of 2005 (H.R. 1295) introduced by Congressman Ney (R-OH) and Kanjorski (D-PA) as a step in the right direction. DFWAMB supports measures that seek to protect consumers from abusive lending practices including formal licensing, pre-licensure education, and continuing education requirements, but believes that to be truly effective such measures should apply not just to mortgage brokers, but all mortgage originators. To this end, DFWAMB also supports a nationwide registry of all mortgage originators.
ISSUES/BACKGROUND
Prevent abusive lending tactics without passing legislation that unduly restricts access to affordable credit for borrowers.
Promote industry self-regulation and strengthen the professional standards of the mortgage industry as a whole and relieve the regulatory burden imposed by the current patchwork of state and local laws.
Provide and enhance consumer education because informed consumers are less likely to fall prey to abusive lending tactics.
STATUS/OUTLOOK
H.R. 1295 has been introduced in the House. Hearings on the bill are expected sometime this spring.
DFWAMB will seek legislation that implements uniform national lending standards to combat abusive lending practices, preserve access to affordable credit, and improve the overall competency of the mortage origination industry. As part of this effort, DFWAMB is actively advocating and participating in discussions that will create a nationwide registry and strong, uniform national licensing and education standards for all mortgage originators.
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