Posted on Wednesday, June 23, 2010
he House Financial Services Committee released a statement bullet pointing the steps that they’ve approved so far. The report is 2000 pages long. It outlaws many common mortgage industry practices. It requires lender to make sure loans benefit the borrower (net tangible benefit underwriting standard), establishes simple criteria for home loans, and requires lenders insure borrowers can repay their loans. It also requires that the new consumer protection agency (the Consumer Financial Protection Bureau) issue anti steering measures and require brokers to register. It addresses compensation and delegates sole authority to decide which mortgages GSEs can purchase to that agency. It also sets fines for brokers who violate the rules at as much as 3 times their compensation. The final version is expected to be ready in July.