Quantcast

Provisions of Reg Reform Bill

The Dodd-Frank Wall Street Reform Bill was awaiting a vote in the Senate as Mortgage Servicing News went to press this month. The bill contains the following provisions that impact the mortgage industry. These provisions would:

* Require MBS issuers to retain up to 5% of the credit risk on conventional mortgages that don't a meet a "qualified" mortgage test.

* Create a Consumer Financial Protection Bureau with rule-making authority over all mortgage lenders and explicated enforcement authority over nonbank or independent mortgage bankers, mortgage brokers and servicers.

* Establish a national consumer hotline so consumers can report problems with financial products and services.

* Instruct federal regulators to establish minimum mortgage underwriting standards along with loan officer and mortgage broker compensation standards.

* Require lenders to disclose the borrower's credit score when they reject a mortgage application.

* Lower the interest rate and points/fee trigger for HOEPA loans.

* Abolish the Office of Thrift Supervision and transfer supervision of federally chartered thrifts into the Office of the Comptroller of the Currency.

* Mandate federal or state regulation of appraisal management companies and require AMCs to pay appraisers their "customary" fee.

* Direct the Federal Reserve Board to examine the mortgage banking subsidiaries of the bank holding companies.

* Provide $1 billion for a program to help unemployed homeowners pay their mortgages and $1 billion to help cities and municipalities renovate foreclosed and abandoned houses.

* Raise the $100,000 deposit insurance limit to $250,000 and lower FDIC insurance premiums for community banks.

* Strengthen the Securities and Exchange Commission's oversight of the credit rating agencies.

* Preserve the Federal Trade Commission's existing consumer protection mandate and direct the FTC to work with the Consumer Financial Protection Bureau to avoid duplicative regulation of the same businesses.

Next in News ►