H.R.4173 Provisions Included In Reform Base Text

use Financial Services Committee has released a summary of H.R.4173 provisions that have been approved by the chamber and included in the Senate Wall Street Reform and Consumer Protection Act base text. Several provisions from the House bill were accepted using House language or with technical changes. One such provision included is the requirement that the consumer agency issue anti-steering regulations for mortgage originators. The following provisions from the House bill have been revised in base text, according to the committee: [list][b]Duty of Care[/b]. A narrower provision than the House bill provides that mortgage originators be appropriately registered when selling mortgages and mark mortgages with unique mortgage registry identifiers.*[b]Mortgage Originator Compensation/YSP Restrictions[/b]. The base text merges the approaches of the House and Senate bills, clarifying that mortgage compensation can only be financed if all originator compensation is paid by the borrower (not third parties) and the borrower pays the entire fee by financing it. The base text also permits compensation through rate for all mortgages as long as they meet the above standard. (The House bill only allowed this for Qualified Mortgages.)*[b]Qualified Mortgage Safe Harbor[/b]. The base text makes two changes to House definition of Qualified Mortgages, allowing higher-interest-rate loans into safe harbor and raising the points and fees limit in the safe harbor from 2% to 3% of the total loan amount.*[b]Liability Mortgage Originators[/b]. Mortgage originators (i.e., individual mortgage brokers and loan officers) are subject to damages for violations of the compensation restrictions, duties of care and anti-steering provisions to no more than three times originator compensation.[/list] Further details on H.R.4173 provisions included in the Senate reform act are available on the House Financial Services Committee's website. SOURCE: [link=http://www.house.gov/apps/list/press/financialsvcs_dem/prconf_061010.shtml]House Financial Services Committee


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