The House Financial Services Committee approved bipartisan legislation last week that is designed to improve access to credit and qualified mortgages for low- and moderate-income borrowers.
The legislation—H.R. 3211, which was introduced by Rep. Bill Huizenga (R-Mich.)—would amend the definition of qualified mortgage under the 2010 Dodd-Frank Act and would alter the definition of fees and points under the Truth in Lending Act to exempt charges for taxes and insurance.
“The goal of H.R. 3211 is to help low and middle income borrowers as well as prospective first-time homeowners realize a portion of the American Dream: owning their own home,” Huizenga said after the committee mark-up. “This legislation is narrowly focused to promote access to affordable mortgage credit without overturning the important consumer protections and sound underwriting required under Dodd-Frank’s ‘ability to repay’ provisions. I am glad to see this bipartisan effort garner unanimous support in committee, and I am hopeful this legislation will see action before the entire house in a timely manner.”
A number of organizations, including the Mortgage Bankers Association, Credit Union National Association, National Association of Federal Credit Unions and National Association of realtors have expressed support for the bill, which now moves to the full house for consideration.