NAMB Government Affairs Update
2014 Legislative and Regulatory Conference Follow Up!
Hello Mortgage Professionals!
Well, I’m back here in sunny and cold Boston, Massachusetts after an exciting and extremely productive three days in Washington DC for our 2014 annual legislative conference. Before I get into the debrief and briefly touch upon some of the highlights of our three days in Washington, I wanted to personally and from the bottom of my heart, thank each and every one of the mortgage professionals that came from their individual states to Washington DC to partake in this legislative event. The reason any association efficiently operates and conveys their words of intention, is through membership participation. Now, even though our numbers were little lower than I would’ve liked, thanks in part to an unsuspecting snowstorm which hit on Monday, we should have had more members from our association there with us to pass along the important words NAMB brought to the Hill. I know we can do better and we have to do better, especially as our legislative and compliance environments continually change. So, let’s all work to increase our legislative numbers next year to over 250, I think that’s a very attainable goal.
So the big news is, H.R. 3370, the Homeowner Flood Insurance Affordability Act, sponsored by Reps. Michael Grimm (R-N.Y.) and Maxine Waters (D-Calif.), passed 306-91 on Tuesday, March 4. That is such a win for our consumers and homeowners throughout the United States. It was also kind of nice, that the vote and passing of that legislation happen to occur on the same day of my wife’s birthday. Not the kind of present she would’ve liked, but, nonetheless she and I were both ecstatic! As of the writing of this particular email, the bill has been brought back to the Senate and has been read for the first time. As new information comes from the Hill, I will pass along to you. I would like to take this opportunity to thank my Flood Insurance Task Force Chair, Kimber White and NAMB Board of Director & Florida President Valerie Saunders. They did an absolute incredible job in tabulating data and statistics which was passed along to our legislators to assist them in their voting. The California Association of Mortgage Professionals, led by George Duarte was also instrumental in lobbying this important initiative.
Tuesday night many of the mortgage professionals in Washington DC took a few minutes before parting their ways, and offered some input as to how each of their meetings went on the Hill. The feedback was overwhelmingly positive regarding the qualified mortgage and the existing provision which includes lender paid compensation to a broker in the 3% points and fees cap. Every professional I spoke to indicated their elected official understands this particular issue is flawed and needs to be addressed. I can say from my own personal experience, that my five congressional meetings and my two Senate meetings all yielded the same results; they understand it needs to change and to do so would create a level playing field for all consumers. So, we’ll be working very diligently on following up with our elected officials with data to support our proposals.
Revising the FHA Loan Limits was also at the center of each of our discussions, and again, those conversations were met with very favorable results. There will be some exciting and new information being published later next week, and as soon as it’s been made available we will share it with all of our members. Great Job California Association of Mortgage Professionals (CAMP) in assisting our GA Team in effectively conveying the importance of FHA Reform. Thank you!
The last, but certainly, not least highlights of the conference was commentary from our guest speakers! Ken Markinson from the Mortgage Bankers Association called in and provided our members with some excellent positions and opinions the MBA are currently working on and are excited to help NAMB in the future. FHA Chair and President Elect John Councilman took some time to speak with FHA Commissioner Carol Galante. Again, thank you so much Commissioner Galante for making time to call in and discuss some important FHA issues with the NAMB leadership and its members.
CFPB Director, Office of Financial Institutions and Business Liaison Dan Smith, stuck at home due to the snowstorm, was gracious enough to join us via a telephone conference call to answer some important broker questions! The BIG QUESTION he helped address answered the ever puzzling question regarding Borrower-Paid Compensation. He confirmed, that you can reduce your Borrower Paid Compensation below your agreed Lender Paid Compensation amount. HUGE WIN for Brokers!!!!
Raj Date, the Managing Partner of Fenway Summer, actually took the time and risked the elements to show up at our conference and speak to our members in person! Raj Date is the former Dep. Director of the CFPB and the brainchild behind what could be the very first Non-QM Wholesale Lender, Fenway Summer. Raj was a huge hit and an incredible speaker who provided us with some information insight to his goals and objectives for his company all the while keeping the conversation very light and entertaining. It truly was an excellent presentation.
On behalf of our entire association I would like to personally thank Raj Date, Dan Smith, Carol Galante and Ken Markinson for their time!
So, there you have it! NAMB Lobbying on behalf of all Mortgage Brokers and Bankers located in every corner of the U.S. How about you become of a part of something bigger than yourself and join the ONLY trade association that is lobbying for beneficial changes on your behalf each and every day.
Contact me anytime at firstname.lastname@example.org.
Thank you for your time.
Richard M. Bettencourt Jr., CRMS, CMHS
Government Affairs Chair
Thank you Rob Chrisman for pointing this out.
A study by George Mason University finds 83% of community banks in the U.S. say their compliance costs have increased more than 5% due to Dodd Frank. Of course those costs are passed on to depositors and borrowers. The Mercatus Center at George Mason University recently published the results of a study of the effects of Dodd-Frank on small banks, defined as banks with less than $10 billion in assets each. The anonymous, web-based survey relied on responses from about 200 banks and was conducted between July 2013 and September 2013. The study sought to analyze the impact of increased regulations on different areas of a small bank’s operations, including products and services offered. An overwhelming percentage of respondents (94%) responded that they would not be adding new products or services as a result. Respondents had already discontinued or were anticipating discontinuing residential mortgages, mortgage servicing, home equity lines of credit, overdraft protection, and credit cards.
But wait a minute! The last I’d heard, any bank with less than $10 billion in assets was exempt, per statutes, from CFPB supervision – what’s up? It is apparent that small banks are feeling the impact of Dodd-Frank – and are consumers better off? Many would say “yes, they are better protected.” That is fine, as we are seeing evidence that any regulations applied to larger banks and other financial institutions always flow downhill. Small banks that serve rural and small metropolitan areas may suffer a disproportionate impact from Dodd-Frank.
NAMB Government Affairs Update
2014 Legislative and Regulatory Conference Follow Up
H.R. 3370 – Homeowner Flood Insurance Affordability Act of 2013 PassesOn Tuesday, March 4, 2014, NAMB members from all over the United States braved the record cold tempuratures to represent mortgage professionals, small businesses, and most importantly, consumers to lobby for H.R.3370, the Homeowner Flood Insurance Affordability Act of 2013 by Grimm. NAMB’s lobbying efforts on Capitol Hill helped sway some votes to address the unintended consequences of the Biggert-Waters Flood Insurance Reform Act which would have left consumers facing skyrocketing premiums and downward pressure on home values.
The bill was passed Tuesday night with 238 cosponsors and is expected to pass the Senate as is. (Details Here)
Special thanks to the California Assocation of Mortgage Professionals, the Florida Association of Mortgage Professionals for their efforts with this legislation and the NAMB members that represented their states this year.
Aso, if you have the opportunity, please thank Provident Funding for their sponsorship of this year’s legislative conference.
This bills passage is just another example that your voice does count and why it is important to invest in your industry.
In addition to lobbying for the flood insurance fix, NAMB members voiced their concerns over the QM’s 3% cap and the inclusion of brokerage entity compensation as well as the FHA loan limit reductions. We also had an intriguing discussion with our keynote speaker, Raj Date, about the non-QM market and the roles mortgage professionals will play serving the underserved. Overall, although it was a little cold outside, but we were successful.
The Consumer Financial Freedom and Washington Accountability Act, sponsored by House Financial Services Committee member Rep. Sean Duffy, R-Wisc., passed the House on a largely party line vote Thursday evening, with 10 Democrats joining 222 Republicans in the majority vote. No Republicans joined the 182 Democrats opposing the reform bill
The CFPB reform bill would replace the single Consumer Financial Protection Bureau director with a five-member commission appointed by the president and confirmed by the Senate, bring its budget under Congressional control, and provide more oversight for the bureau, currently under the aegis of the Federal Reserve.
The measure now goes to the Democrat-controlled Senate where it faces an uphill battle.
Supporters of the reform bill say it would ensure that a diversity of viewpoints inform the CFPB’s regulatory and enforcement agenda. It would also conform the bureau’s governance to that of other federal agencies charged with consumer or investor protection.
House Financial Services Committee Chairman Jeb Hensarling, R-Texas, took the field first in the debate before the vote, accusing the CFPB of being unaccountable and out of control. Hensarling talked at length about the expenses the CFPB has been racking up.
“The CFPB has unbridled power to impose rules like the QM rule. According to Federal Reserve reports, one-third of blacks and Hispanics would not be able to get a mortgage,” Hensarling said. “This is designed to make the Bureau more accountable and transparent… We know that this is an agency that was designed to be unique, if not perhaps rogue; it is an agency like no other. Arguably it is the single most powerful and least accountable Federal agency in the history of our nation and thus demands rigorous oversight. The American people deserve better.”
The bill further subjects the CFPB to the regular appropriations process and makes the CFPB a stand-alone independent agency rather than a bureau within the Federal Reserve System.
“We do need protection for consumers from Wall Street but consumers need to be protected from Washington as well,” Hensarling said.
U.S. Rep. Randy Neugebauer, R-Texas, authored parts of the measure that would subject CFPB to the normal appropriations process like other regulators.
“Right now, CFPB can simply draw money from the Fed whenever it needs,” Neugebauer explained. “This bill is important not only because it makes the budget accountable to taxpayers, but also because it allows Congress to regularly evaluate CFPB’s performance and detect waste, fraud, and abuse.”
U.S. Rep. Maxine Waters, D-Calif., rose in opposition to CFPB reform.
“The CFPB has been immensely successful in protecting consumers. Enforcement actions more than $3 billion refunded to 9 million consumers,” Waters said.
She further said the change to the leadership structure to a five-member commission would increase bureaucracy and weaken the bureau.
“The CFPB has ensured that all consumers have fair and transparent access to consumer financial products and services. It has written important mortgage rules that prevent lenders from engaging in the risky and irresponsible practices that led to the collapse of the housing market and fueled the 2008 global financial crisis,” Waters said. “But Republicans don’t believe that we should have a consumer advocate in government – they would prefer these unscrupulous actors continue to take advantage of consumers without interference. And the simple fact is that H.R. 3193 would accomplish this goal – obstructing the CFPB’s ability to protect consumers from deceptive marketing, unlawful debt collection, lending discrimination, overcharged fees and other illegal activity.”
House Financial Services Committee minority member U.S. Rep. Gary Peters, D-Mich., urged his colleagues to vote against the reform bill, saying it would weaken the CFPB and impede the Bureau’s ability to provide critical consumer protections for American middle-class families.
“We have come a long way since the financial crisis of 2008 and now is not the time to turn our back on the middle class. This misguided bill would weaken the CFPB and its ability to provide necessary consumer protections to families in Michigan and across the country. Instead of voting to undermine the CFPB, we should be standing up for consumers and making our financial system work for them,” Peters said.
Critics of the CFPB also criticized the CFPB’s plans to spend $145 million on office renovations for a building it does not even own. The Federal Reserve inspector general launched an investigation into why renovation costs for the CFPB’s headquarters have soared to more than three times the original estimate.
Debate continues throughout Thursday. Developing…
Key to preserving 30-year fixed?
Congresswoman Maxine Waters is pursuing a formalized proposal that she hopes will preserve the 30-year mortgage.
Waters believes her government guarantee idea on Fannie Mae and Freddie Mac bonds will be key to accomplishing this goal. Further she wants to see this happen without costing the taxpayer a dime. Instead, the mortgage industry will pay.
“Next week, I will be discussing a proposal with Democratic members of the Financial Services Committee to reform the GSEs, which takes into consideration the changes in the marketplace since the crisis,” Waters said in a statement. “This proposal will preserve the affordable 30-year, fixed rate mortgage and provide an explicit government guarantee that is paid for by industry.”
Following today’s announcement that Fannie Mae finally returned a profit to the United States treasury, Waters emphasized more work is needed.
Waters most recently said she wants to put the regulatory microscope on the transfer of mortgage servicing rights.
Fannie Mae will pay a dividend in March that will bring the total to $121.1 billion. Since 2008, Fannie received $116.1 billion in government bailouts.
“In 2008, as the economy was reeling out of control, Democrats worked with a Republican Administration to staunch the bleeding by putting Fannie Mae and Freddie Mac into conservatorship,” Waters said.
“Doing so was controversial, but the action helped stabilize the housing market and provided Congress the opportunity to address the root causes of the subprime crisis,” she added.
Monday, February 24, 2014
NMLS Conference Wrap-up
Well, it was a fantastic week at the NMLS Conference in Miami, Fla. It was quite a hectic week, but I learned a lot. I had the opportunity to meet with a number of different regulators from different states, and it was a true eye-opening experience to see and hear how other states, besides my own, handle registrations, complaints and types of regulatory measures. One of the items that needs to be addressed is the checklist that states put out there for the renewal, and even the new registration process, of originators. If I came home with anything from the NMLS Conference, it is that you need to do what this checklist is requesting. NO more and NO less. We need to do this right. After all, it is a direct reflection on our professionalism to do it right the first time.
It was really nice to connect again with good friends and many regular NAMB event attendees were there NAMB. The mortgage field was very well-represented. I sat on a panel with two gentlemen from the Consumer Financial Protection Bureau (CFPB) on the LO Compensation Panel Discussion. It was one of the best-attended events at the Conference. I also talked with people from the Conference of State Banking Supervisors (CSBS) and the American Association of residential Mortgage Regulators (AARMR). On a side note, I have been appointed to be on the AARMR Industry Advisory Council. I hope to be able to bring some of my mortgage perspective to this Council. One of the best and most informative speakers at the event was Holly Petraeus, head of the Office of Servicemember Affairs for the CFPB. She discussed the topic of providing financial services to military veterans and their families. Her forte is understanding what these people go through and how they can get help to move forward on a lot of fronts, not just on the mortgage front.
DC Here We Come!
At the upcoming NAMB Legislative & Regulatory Conference, March 2-4 in Washington, D.C., we will be having a Delegate Council Meeting. If you do not know who the representatives from your NAMB state affiliate are on the Delegate Council, contact your state association. It is your right to know who these people are and make sure that you know what they are doing while representing you. Each state should send two reps to the Delegate Council Meeting to be able to weigh in on the decisions of the Council. This is the only time (Delegate Council) that your influence is actually important. As I realize that there are a few states that no longer have NAMB state affiliations, we are working for a solution for each of these states to have proper representation. There will be more on this in the coming weeks regarding the Delegate Council.
Getting Your Wholesale AEs Involved
I would appreciate it if you would ask your wholesale account executives if they are members of NAMB, and if they are not, have them send me an e-mail at email@example.com. I need to get them to become members of the association.
See you all at the Legislative Conference.
Until next week!
(Rancho Cucamonga, CA) – Today, Inland Empire native and legislative policy veteran Lesli Gooch announced she will run for the 31st Congressional District to replace retiring Congressman Gary Miller. Her announcement comes with prominent endorsements and an impressive $100,000 in campaign donations.
“I am running for the 31st Congressional District to bring real solutions to Washington, DC and to protect the voices of our families, cities, business owners, and everyone like me, who calls the Inland Empire their home. I have spent my career fighting for the residents of the 31st District in our nation’s capital,” said Lesli in her announcement at a campaign stop in Rancho Cucamonga. “My passion has always been finding effective and achievable solutions to the issues facing the citizens of the Inland Empire, where I grew up and my family resides. “
”It has been an honor to dedicate my career to serving the people of the 31st Congressional District, and once elected I will continue to fight for our families, business owners and communities by putting policy outcomes before politics and delivering federal support to address the needs in the Inland Empire,” she continued.
With her announcement, Lesli unveiled an impressive 72-hour fundraising tally of over $100,000 and the endorsements of several critical community figures including the 31st’s retiring Congressman, Gary Miller.
“Lesli has spent the past 15 years on Capitol Hill fighting for San Bernardino County families,” said Congressman Miller. “As my Senior Policy Director, Lesli has worked tirelessly developing programs to ensure safe, decent, and affordable housing opportunities for Inland Empire families; securing funding and administrative victories to improve our streets and schools; and fighting to ensure Inland Empire small businesses thrive and create good paying jobs.”
Lesli was there to serve the Inland Empire through the 2008 economic crisis, fighting to ensure our region received its fair share of federal recovery efforts. She delivered results to stabilize the housing market and jump start economic recovery as a consultant for San Bernardino County, Inland Empire housing non- profits, and the Housing Authority of the County of San Bernardino.
In announcing her candidacy, Lesli said: “Economic prosperity and job security will come from making sure the Inland Empire is the best place to live and grow a business, and the safest place to raise a family.”
“Rather than focus on what divides us, we need to concentrate on the values that unite us: decent, safe neighborhoods to live in, safe schools for our children, and well-paying jobs. All of this comes from American prosperity, and with the right leadership in Washington, we can return prosperity and growth to the Inland Empire.”
Congressman Gary Miller’s endorsement is joined by San Bernardino County Supervisor Gary C. Ovitt and Rancho Cucamonga City Councilmember and Assembly District 40 candidate Marc Steinorth.
“Lesli has consistently been a strong advocate for our community. She has an impressive track record of delivering actual results for San Bernardino County,” noted County Supervisor Gary C. Ovitt. “Her knowledge and policy expertise will serve us well in Congress. Lesli is the only candidate in this race that can demonstrate proven results and I am honored to stand with her for the 31st District.”
In today’s announcement, Lesli Gooch has also been endorsed by long time community leader Frank Williams, Chairman of the Housing Authority of San Bernardino County and the Executive Director of the Ontario Airport Alliance.
“Lesli has been working for the best interest of our County for almost two decades,” said Mr. Williams. “She is absolutely the most qualified candidate for this job. She is ready to hit the ground running and needs no on-the-job training. As our Congresswoman, I know she will deliver for us in Washington.”
FOR IMMEDIATE RELEASE: February 19,2014
For more on information on Lesli’s campaign for the 31st Congressional District,
please visit www.lesligooch.com
Monday, February 17, 2014
Greetings from Sunny Florida
Good morning from sunny Florida! As you all probably know, I write this message on a Friday for Monday distribution, but by the time you get this, I will be attending the NMLS Conference in Miami, warming up from the frozen tundra of the Midwest. I have been asked to speak on a panel with two reps from the CFPB and a moderator from the NMLS. The title of the panel is “LO Compensation Rule, Examinations and the Market Forces Affecting Brokers.” This should be a good opportunity to get our word out. As this is the only panel breakout session at the event, it should be well-attended. I will have more on my experiences at the NMLS Conference next week.k
Uniform State Test
Last week, we talked about the NMLS Uniform State Test (UST). I do want to clarify one thing … you must complete your registration for the test by March 31. However, you have six months to actually take the test after you register. So don’t be shy. Register today.
Get Your LISA
Just a reminder, make sure that you register yourself for the Lending Integrity Seal of Approval. If you have renewed your NAMB membership, you have to renew your LISA as well. One of the things that may not have been explained enough is that the Seal of Approval is only good for one year, and after you renew your membership, you have to renew it. It only takes a few minutes, but it is well worth it. You qualify if you are a loan originator and are a member of NAMB. So what is stopping you? Do this today! Go to the NAMB Web site, look under “Membership,” and you will see the “Lending Integrity Seal of Approval.” Click on the link and follow the instructions.
Don’t forget the NAMB 2014 Legislative & Regulatory Conference in Washington, D.C., March 2-4, 2014.
NAMB Government Affairs Update 2014 Legislative and Regulatory Conference
Your Government Affairs team has put together a great program of speakers for the March 2,3,4, Washington, D.C. conference. With that we will have a great opportunity to get some of the tough questions you have answered.
So, imagine that you are meeting with the CFPB, what are the top 3 questions you would ask. Please click on the survey link below, and help us get the information you need.
If you have not registered for the conference yet, please do so now. If you have not been to Washington, D.C. to lobby for your industry yet, you really should consider it. It changed my life the first time I went and I know it will change yours.
See you in Washington!
Contact us anytime at firstname.lastname@example.org.