The head of the trade group that represents mortgage brokers is calling on the sector to support legislation that would leave more income available for loan originators.
The call to action came from John Hudson, who is chair of government affairs at NAMB, The Association of Mortgage Professionals.
At issue is H.R. 4323, the Consumer Mortgage Choice Act, which would impact the definition of a qualified residential mortgage under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
“Currently, in the 3 percent cap on points and fees, they’re looking to include escrows, originator compensation as well as affiliated title fees,” Hudson said. “This cannot be, and should not be, part of that calculation on points and fees.”
NAMB says that the bill has bipartisan support and that it would clarify that affiliate title fees, certain loan originator compensation and escrow payments are not included in the calculation.