Government Affairs

Our delegates and GA Committee Co-chairs, Doug Braden and Jayne Bail, attended the NAMB Legislation Conference in DC this year. 

The NAMB by-laws were revised in Delegate Council in October 2015.  This delegate council made a final review and approval of the changes.  Mostly, the changes were definitions of the NAMB membership categories.  Additionally, NAMB Board of Directors advised that come August 1st 2016 the NAMB membership fee will be $120 for each individual member, for each category of membership.

The conference included classes with Radian regarding the Home Ready program. NAMB Leg 2016 Home Ready - Radian Presentation.pdf.

Freddie Mac came in and showed us their homebuyer initiatives.  Namb Leg 2016 Freddie presentation.pdf

Terry Clemans from National Consumer Reporting Association discussed the Trending Data credit report that Fannie Mae is making effective this summer.  2016 NAMB Leg Conf Trended Data.pdf

Paul Mondor from the CFPB spoke at the conference.  He answered some questions regarding the rules and regs of the ATR/QM, TRID, MSA’s and the projection of the HMDA rules.  Since our conversation with Mr. Mondor (the author of the LO Comp rule) was confidential, no presentation was offered.

We spent the day on Tuesday pounding the halls of the Senate and House of Representatives.  Though no congressmen or Senators were available to meet, the time spent with each member’s legislative director was productive.  The NAMB bill HR3393 is building traction.  The goal was to obtain co-sponsors in the House, and advise the Senate of the sister bill that will be coming with this language.  This bill is an amendment to the Truth in Lending Act to simplify the calculations of the QM.  This simplification will clarify to the CFPB the way they are to calculate the QM for the mortgage broker since current rule creates a different calculation of the broker versus a lender.  So far 2 Colorado Representatives are co-sponsoring the bill.  CoAMP is requesting all of our House Representatives to join our efforts and co-sponsor this bill.  So far the response has been positive. Our main objective is to add Ed Perlmutter (D) who serves on the Financial Services committee to join Congressman Tipton and Coffman as a co-sponsor. This could help influence the rest of our state representatives to join. Since Diana DeGette and Jared Polis both look to him to lead from their side of the isle, his sponsorship could draw more sponsors from Colorado both Republicans and Democrats.

HR2121 had unanimous positive votes with the House Finance Committee on 3/2/16.  The bill was supposed to hit the floor of the House last week, but has been held up and has not yet gone to a vote.  This is a transitional licensing bill supported and lobbied heavily by the MBA.   The NAMB participants were asked to discuss this bill with the congressmen and request a negative vote.  Our objection is that this bill would allow NMLS registered LOs to obtain a “temporary” license while originating loans and they have 120 days to complete all of their education and testing, etc to gain their state licensing. (Note – the registered LOs are not “licensed” and have not passed any NMLS tests or completed any education that is required in the SAFE Act) Not only is this an open door to consumer harm, but it undermines the whole purpose of licensure and the Safe Act.  There is a non-legislative fix to this problem and we are working with the congress and the NMLS to have an internal fix versus a legislative fix. 

Since we are embroiled in an election year, both of these Bills will probably languish and not be a priority.  However they could be included in language as part of the final year bargaining and our intent is to make sure that the language we support in HR3393 finds its way into a passable House and Senate Bill.

Call to action is to call your Congressman and encourage them to co-sponsor HR3393

And make an extra call to Ed Perlmutter’s office and encourage him to Co-Sponsor the Bill as well. Ed Perlmutter DC office 202-225-2645, ask for Noah Marine legislative director.

Doug Braden and Jayne Bail attended the Zillow event on March 30th at the Curtis Hotel in Downtown Denver.  The guest speakers were Governor John Hickenlooper, Senator Cory Gardner, and Congressman Ed Perlmutter.

The topic of the event was the state of the housing market in Denver and how we can best manage sustainable growth in the coming years.  There was also discussion about the lack of available affordable housing and what Federal policies might be able to promote the availability of affordable housing in Denver.  The topic of student loan debt and its impact on buyers' qualifications was also discussed.

Below is a link to the documentation provided at the event.

Link to Meeting Agenda

Agenda and Material event Zillow March 30th.pdf

Jayne Bail with Congressman Ed Perlmutter

Senator Cory Gardner speaking about the housing industry

Your GA team Jayne Bail, Doug Braden and Bill Kidwell are all in Washington DC working for our members along with current President Jason Kauffman and Kay Fruci. We are advancing an amendment to HR 685 to correct the double counting of fees in the QM calculation for mortgage brokers. stay tuned for video from the Hill Rock on DL Braden  

The NAMB Legislative Conference is set for April 12th -14th and your GA committee has already set the stage to present our positions on the LO comp rules and new integrated disclosures. Doug Braden made an advance trip to DC last week. Doug Visited with staffers from both Chairman's of the Financial Services committee and Senate Banking on Feb 3 & 4th, he also visited with Noah Marine and Christian Jorgenson both staffers for our Colorado Congressman on Financial Services, Ed Perlmutter and Scott Tipton. We have set the stage for a bi-partisan effort to addres the inequity in the LO comp rule. Let's get ready to rock the hill with a record number of Colorado delegates to the conference.  

On August 27^th the Board of Mortgage Loan Originators directed staff of the Colorado Department of Real Estate to commence with rulemaking procedures with a view to adopting the Uniform State Test. 

In discussions with CoAMP members, it has come to our attention that most current licensees do not know of the UST and what the Board of MLO are willing to accept for qualifying as a new licensee in the state of Colorado. 

What is the Uniform State Test?

The Uniform State Test (UST) was launched on April 1, 2013 by the NMLS.  The new UST material tests applicants on their knowledge of high level state-related content that is based on the SAFE Act and the

CSBS/AARMR Model State Law (MSL) which many states used to implement the SAFE Act. 

 The UST can replace the state-specific test components for the states that adopt it.  State agencies may elect to adopt the UST at a future date, but they are not required to do so. State agencies which choose not to adopt the UST will continue to require applicants to take and pass the current state specific test components.

The UST is a new section of the required test for any new licensee to pass.  Therefore, regardless if a State adopts this as a replacement of a state specific test, a new licensee must pass this portion of the test. 

What are the current Colorado Requirements pertaining to education and testing?

The current requirements to being a new licensee in our State as it pertains to education and testing include:

• 1.                    “each individual applicant shall complete…the twenty (20) hours of pre-licensing education requirements developed, administered and approved by the Nationwide Mortgage Licensing System and Registry” (this was initially a 40 hour requirement which was modified in  to match the S.A.F.E. ACT).
• 2.                   “An individual shall pass the test in accordance with policies and procedures developed and administered by the Nationwide Mortgage Licensing System and Registry and in compliance with the S.A.F.E. Mortgage Licensing Act.”  The test consists of two parts including a national component and a Colorado state specific component.

What is the change that is being proposed by the Board of MLO?

The proposal from the Board of Mortgage Loan Originators is not yet explicit in writing.  The Colorado Association of Mortgage Professionals is waiting for the DRE to draft the rule.  The current proposal, however, is to eliminate the Colorado state specific part of the testing.   In lieu of the Colorado state specific test, the proposal will accept the Uniform State Test (UST) as the prerequisite of licensure in Colorado.  The UST does not cover any state specific law, rules and/or regulations.  Moreover, the UST includes questions that are not relative and even contradictory to Colorado State Law.   The proposal from Board of Mortgage Loan Originators will require an applicant to take two hours of Colorado education through a substitution of two of the current twenty hours of pre-requisite education. 

Therefore, any education component that may have been in place for those two hours (ethics, best practices, fundamentals of mortgages…etc) will be replaced with the Colorado state specific education.  

CoAMP View:

CoAMP Board of Directors have discussed this issue at length and we are not in support of this change. This change would  lower the standards of being a new licensee in our State, and thereby lower the performance, professionalism and education of future licensees.  This could have a negative impact in our State for the Consumer. 

We have not yet been able to determine the benefit of the proposed change to Colorado. 

We would like to know your thoughts on this proposal. Please click this link to take a survey for this subject.   

https://www.surveymonkey.com/s/BLY8XN5

Thank you for taking the time to provide feedback so we can better serve you.

CoAMP Board of Directors

Please read the requirements of renewal carefully.  Have you completed everything?  Are you ready to renew before the end of the year?

Please contact us if you have any questions or concerns.

Mortgage Loan Originator and Mortgage Company Renewals Open November 1st.pdf

Frank Fesses Up: Gov't Shares Blame For Financial Crisis

Source: Investors.com http://news.investors.com/ibd-editorials-viewpoint/092613-672690-barney-fannie-affordable-housing-goals-financial-crisis.htm?p=3

....Though Frank blamed the government's affordable housing goals and homeownership campaign, he refused to implicate the Community Reinvestment Act in the mortgage crisis.

President Clinton tightened enforcement of the anti-redlining law in 1995, forcing banks to expand home loans in low-income urban neighborhoods in the years leading up to the crisis. Frank lobbied to expand it even further.

"I agree that the government (contributed to the crisis) undefined and it was Fannie and Freddie and it was the Clinton administration and the Bush administration and members of Congress on homeownership undefined but I think all of us agree that ... . the (CRA) was no problem."

Many economists, in fact, do not agree. A recent study by the National Economic Research Bureau found that the CRA led to "a clear pattern of increased defaults for loans" made by covered banks in the run-up to the crisis.

More, the 1990s law authorizing HUD to enforce affordable housing goals at Fannie and Freddie undefined a law that Frank backedundefinedmandates that Fannie and Freddie "assist insured depository institutions to meet their obligations under the Community Reinvestment Act."

Read More At Investor's Business Daily: http://news.investors.com/ibd-editorials-viewpoint/092613-672690-barney-fannie-affordable-housing-goals-financial-crisis.htm#ixzz2g6yU5qqC
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook

On July 30th, Marc Savitt (NAIHP), Jeri Lynn Fox (USA Mortgage), Bob Perry and had the opportunity to share a call to action with hundreds of MLO's. We are sorry that you were unable to participate. I know that business events often prevent finding the time to attend events and maybe priorities make it inconvenient, too.

Just in case you are interested in helping the more than 800 folks who registered for the event make the result positive for industry and consumers, you can still get involved. And, since you are an IMMAAG user I know you care enough to act or share the invitation to act with someone you know.

The webinar addressed the issue of the disparate, unfair and confusing treatment that will be imposed on consumers and originators by the way the CFPB has implemented its final QM/ATR rule. The webinar also explained the actions to take to help prevent the outcome and provided information about the tools available to help.

A recorded version of the webinar is available as a link on the IMMAAG home page at www.immaag.com. Feel free to go there at your convenience and don't hesitate to share the link with every originator you know.   

The issues at hand are so incredibly important to consumers and the MLO industry that your action, maybe more than ever before, is needed. With it we have a possibility to create a different, better outcome than what will occur if you don't reach out in August.

The materials enabling you to share the problems and a solution with your Congressional member and Senator are available on the IMMAAG website. Just go to www.immaag.com and use the link. While there are a lot of materials, I did prepare a consolidated package in a single pdf file. There is a cover letter to go with that and I am adding the names of all of the HFSC and Senate Banking Committee members as well as the sponsors of each bill.

While it would be great to see each member, even if all you can do is get the package in the hands of the staff and share the talking points with them, they have got to hear that even though the content of HR1077 is embraced in the new HR2767; you are imploring them to join in the support or continue their support of the stand alone bills.

HR2767 repeals the reverse mortgage program and has enough controversial language about the wind down of Fannie Mae and Freddie Mac and the HUD changes that it may never make it anywhere.

We need the stand along bills before January.

When you meet with your congressional member, acknowledge you understand September will be a tough month because of the debt ceiling and keeping the government running, but remind them that if HR1077 and S949 do not pass, thousands of small business and tens of thousands of individual originators will suffer a potential end to their business model and hundreds of thousands of consumers will be harmed by the new required misinformation form the CFPB's final rule.

Remind them that the reason you are pressing so hard on the legislation is, as your package demonstrates, the CFPB's consistent resistance to acting on fact-based input.

During the webinar, several people wanted to know about the 3% CAP on Points and Fees. I committed to sending a summary by the end of the week, i.e. today. I have to apologize but my primary computer has blown up and is now in its 7thhour of a boot scan to overcome the hacking of all of my business email accounts. So, instead of a summary I am including a link to what I believe is a very well written report form October Research and the October Store that includes several pages that fully explain where the Points and Fees stand as of the rule. I will be creating an IMMAAG summary (assuming the system comes back to life) over the weekend and posting it on the website.

In the meantime, just click on this link http://www.doddfrankupdate.com/DFU/Ability-to-Repay.aspx and you can receive a free downloaded copy of the report.

I also have to apologize that the main server is down, so you may not be able to reply to this or send emails to  bill@immaag.com or admin@immaag.com until Monday. Feel free to call me at (303) 674-1200 if you need any help getting ready to meet your congress person.

Thanks again for attending and for your willingness to help.

Regards,