Washington Report

Advocacy Updates from Washington D.C.

3% Cap Bill Introduced in the Senate

On Tuesday May 14, 2013 Senator Joe Manchin (D-WV) and Senator Mike Johanns (R-NE) introduced S. 949 "The Consumer Mortgage Choice Act" in the United States Senate. The legislation addresses discrimination in the calculation of fees and points under the 3% cap on fees and points in the Qualified Mortgage rules.

The legislation is a companion to H.R. 1077, introduced by Representative Bill Huizenga (R-MI) and David Scott (D-GA) in the House of Representatives this March. The legislation is critical, particularly to real estate firms with affiliates and small and mid size lenders and mortgage brokers. Without it, perhaps one third to one half of the loans they 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.

Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.