NAR Addresses 3% Cap in House Hearing
On May 21, 2013 NAR submitted a statement for the record to the House Financial Services Subcommittee on Financial Institutions and Consumer Credit hearing on the Qualified Mortgage/Ability to Repay rule. NAR pointed out the discrimination in the calculation of fees and points under the rule. NAR advocated that Congress enact "The Consumer Mortgage Choice Act," H.R. 1077 and S. 949.
The bipartisan legislation addresses discrimination in the calculation of fees and points under the 3% cap in the Qualified Mortgage rule. The legislation is critical, particularly to real estate firms with affiliates and small and mid size lenders, community banks, credit unions and mortgage brokers. Without it, perhaps one third to one half of the loans they currently make would not meet the qualified mortgage test and would either not be made or would have to be made by large lenders who do not have to count the same items in their fees and points calculations under the test. The QM rule is set to take effect in January of 2014.