WASHINGTON — Stronger registration and licensing requirements for lenders is among the highlights of a housing bill unveiled Tuesday by Republican members of the House Committee on Financial Services.
The measure would also expand disclosure requirements, increase support for consumer counseling on housing matters, and expand a program that helps subprime borrowers transition into FHA loans. However, the GOP proposal did not include a federal insurance fund for refinanced mortgages.
"We need to help people who are suffering, while taking the necessary steps to assure this crisis doesn't recur. Some of the other legislative proposals would require taxpayers to subsidize the costs resulting from bad decisions made by some lenders, investors and borrowers. That's unfair," said Representative Spencer Bachus (R-Ala.), the ranking Republican on the panel.
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The GOP proposal came on the eve of today's hearing at which committee members are to consider the bill introduced by Committee Chairman Barney Frank, (D-Mass.) that would create an insurance fund that guarantees up to $300 billion in refinanced mortgages. Frank's office has estimated that the plan would cost between $3 billion and $6 billion. Under Frank's measure, borrowers with loans worth more than the value of their home would be able receive a newer, more affordable government-backed loan.
NAFCU Public Relations Manager Patty Briotta and CUNA Vice President for Outreach Patrick Keefe both said they appreciated the efforts of the GOP members and their staff and their organizations were still reviewing the proposal.
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