"Consumers deserve affordable mortgage options and this bill, by fostering more competition, will help ensure that," Berger said. "We appreciate all representatives who recognized these benefits and voted in favor of H.R. 1153, and we encourage their counterparts in the Senate to do the same."

The National Association of Realtors also supports the bill.

Consumer groups oppose the bill, saying the current law provides a reasonable standard to protect homebuyers from being gouged.

The bill would adjust Truth in Lending Act (TILA) mortgage rules by exempting from the qualified mortgage cap on points and fees any affiliated title charges and escrow charges for taxes and insurance.

CUNA President/CEO Jim Nussle said the bill aligns with CUNA's bipartisan, pro-consumer Campaign for Common-Sense Regulation.

"The Mortgage Choice Act is a common-sense piece of legislation that would bring more consistency to the lending process, providing consumers with more access to mortgage credit and more choices in credit providers," Nussle said. "This has seen bipartisan support in this and the previous Congress, and CUNA will continue our work to move it forward in the process."

Qualified mortgages cannot have a points and fees value of more than 3% of the loan amount. The bill would change the calculation to remove escrowed homeowners' insurance premiums and title insurance purchased from a company affiliated with the lender. Purchases from a non-affiliated title insurer already do not count against points and fees.

Groups opposing the measure include Center for Responsible Lending, Consumer Action, Consumer Federation of America, Leadership Conference on Civil and Human Rights, the NAACP, National Association of Consumer Advocates, National Consumer Law Center and the National Fair Housing Alliance.

In a letter they sent Tuesday, they urged House members to oppose the bill, saying it would create a loophole that would allow unscrupulous lenders to inflate costs.

"This bill reintroduces some of the higher fees borrowers faced in the lead up to the mortgage crisis; fees that the new mortgage rules were designed to prevent. Congress should refrain from weakening the QM rule and reject this bill," they wrote.