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Friday, July 19, 2013

Points and Fees Included in the PATH Act: HFSC Holds Hearing

Yesterday, the House Financial Services Committee (HFSC) held a hearing to examine housing reform and the Protecting American Taxpayers and Homeowners Act of 2013 (PATH Act), which will soon be introduced by HFSC Chair Jeb Hensarling (R-TX).

ABA released a statement, submitted in connection with the hearing, applauding the PATH Act for its wide-ranging proposal to overhaul the nation’s housing finance system. Although the Act has not yet been formally introduced, the Section-by-Section of the Act contains provisions supported by the ABIA and ABA, including an extension of the Dodd-Frank mortgage rules’ compliance deadline and changes to the points-and-fees definitions.

Excerpt of ABA's Statement Regarding Points and Fees in the PATH ACT:
Section 403 includes changes to the points and fees definitions for the Qualified Mortgage rule
which were also included in H.R 1077, introduced by Representative Bill Huizinga. We strongly
support these changes which are of particular import to community banks who serve as mortgage
brokers when serving their customers. Without the changes in this section, these banks will find it
harder to make a Qualified Mortgage and to provide mortgage servicers to their local communities.

Although Rep. Huizinga briefly mentioned his support for changes to the points and fees definitions in the Qualified Mortgage rule, there was not a detailed discussion of this provision in yesterday's hearing.

A markup of PATH Act is scheduled for Tuesday, July 23, 2013 at 10:15am.

Learn more about the HFSC's hearing.