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Monday, May 12, 2014

House Financial Services Committee approved H.R. 3211, the Mortgage Choice Act of 2013

By: Katie Wechsler, Barnett Sivon & Natter, P.C.
 
On Wednesday, May 7, the House Financial Services Committee approved H.R. 3211, the Mortgage Choice Act of 2013, introduced by Rep. Bill Huizenga (R-MI). The legislation would modify the definition of points and fees under the Truth in Lending Act to exclude escrow for insurance and taxes in escrow and certain fees paid to affiliated companies.

Currently, escrow only for future payment of taxes is excluded from points and fees, and this legislation would add insurance to that exclusion.

Additionally, under the current statute, charges for title examination and title insurance must be included in points and fees if the charge is paid to an affiliate. The legislation would modify this requirement and exclude charges for title examination and title insurance paid to an affiliate from points and fees.

The legislation would require the CFPB to finalize rules implementing these changes within 90 days of enactment.

The next step for this legislation is consideration on the floor of the House of Representatives. It is unclear whether the Senate would consider this measure.