On Monday I posted about the consideration of the Financial Regulatory Reform bill by the U.S. Senate Banking Committee. As we had been hearing, the committee passed the bill along party lines in order to begin the process of negotiation before it is potentially considered by the full Senate.
Below is the statement that the National Association of Mortgage Brokers issued after the bill was passed. Please let me know if you have any questions about how this legislation might impact you or your business and how the NAMB can best make your concerns known to members of the Senate as they bring this very important bill up for consideration.
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"On March 22, the Senate Committee on Banking, Housing, and Urban Affairs passed the 'Restoring American Financial Stability Act of 2010,' after holding a markup hearing, clearing the way for it to be voted on by the full Senate in April after the scheduled Easter Recess. The bill, introduced by Committee Chairman Christopher Dodd (D-CT), accurately addresses the causes of today's housing and mortgage markets; proposing a revamp of consumer protections and Wall Street regulations, among other provisions. Further negotiations will be held and additional amendments will be offered prior to and during debate on the Senate floor.
NAMB was encouraged by the bill, which has no specific language further adversely affecting the small business mortgage broker profession from offering services to consumers, showing the Senate recognizes many of the lapses in regulations of those who underwrite and securitize mortgage products. NAMB is concerned that current provisions in the bill requiring risk retention will cripple mortgage lending nationwide, specifically in low-income, minority, and rural areas, which would further hinder the housing recovery and the economy as a whole.
The Senate bill would create a Consumer Financial Protection Bureau (CFPB), housed in the Federal Reserve, but having broad authority for instituting consumer protections. The CFPB would have authority over small business mortgage professionals, provided the CFPB consult with the Federal Trade Commission (FTC) before issuing rules. NAMB believes consultation with the FTC is essential to ensure any CFPB rulemaking that addresses small business mortgage professionals does not create an unlevel playing field between origination channels or restrain the ability for originators to receive compensation for services provided."