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Thursday, July 25, 2013

House Committee Approves PATH Act

The House Financial Services Committee (HFSC) yesterday voted 30-27 to approve the Protecting American Taxpayers and Homeowners Act of 2013 (PATH Act), introduced by HFSC Chair Rep. Jeb Hensarling (R-Texas). The committee made only technical changes, rejecting several Democratic amendments. Two Republicans voted against the bill; no Democrats voted in favor.

As passed, the bill includes the ABIA-supported language from H.R. 1077 that address our concerns over points and fees.

PATH Act Section 403. Definition of Points and Fees 
Incorporates provisions from bipartisan legislation (H.R. 1077) to increase the number of mortgages that qualify as a “Qualified Mortgage”. Excludes from the QM cap on points and fees: (1) affiliated title charges, (2) double counting of loan officer compensation, (3) escrow charges for taxes and insurance, (4) lender-paid compensation to a correspondent bank, credit union or mortgage brokerage firm, and (5) loan-level price adjustments which is an upfront fee that the Enterprises charge to offset loan-specific risk factors such as a borrower’s credit score and the loan-to-value ratio.

Learn more from the HFSC.