Mortgage Grapevine

Just got this regarding YSP proposal

To: All NAMB Members
From: Denise Leonard, NAMB Government Affairs Chair

RE: National Teleconference to Discuss H.R. 3915 the "Mortgage Reform and Anti-Predatory Lending Act of 2007"
Mortgage brokers are facing extinction. The U.S. House of Representatives is considering a bill that will fundamentally change the way we are paid, outlaw YSP, and legislate underwriting guidelines into law. Additionally, we fear that all subprime lending will cease to exist due to excessive lender liability. It is important that you read this memo.

We are calling upon our members to respond as never before. To save our industry, we are asking you to learn about this threat and then contact your congressman.
TIME IS CRITICAL. The bill became public last week. The U.S. House of Representatives Financial Services Committee will vote next week.

LEARN. Step 1: We have scheduled two information teleconferences. Please choose ONE of the two. The first is scheduled for Thursday, November 1st at 1:00pm EST (12:00pm CST, 11:00am MST, 10:00am PST), and the second is scheduled for Friday, November 2nd at 7:00pm EST (6:00pm CST, 5:00pm MST, 4:00pm PST). These are free calls.

Call in Number:
THURSDAY: 1-877-238-4697 Pass code: 453723.
FRIDAY: 1-800-214-0745 Pass code: 648439.

There will be 500 lines for each of the calls. Please call in early to guarantee a spot. You will be placed on hold with music until the moderator begins the teleconference.
RESPOND. We have prepared sample letters for your use in writing to or calling your congressman. These will be sent to our entire membership on Friday. Important warning: The vote is now scheduled for Tuesday, November 6. Please respond before next Tuesday.

More information is contained below. However, please call in to our conferences and respond so that we can preserve the way we do business and the subprime mortgage market.
______________________________________________________________________
Commentary: We urge you to read the balance of this memo and the attached information before you listen to our teleconference.

On Monday, October 22, 2007, House Financial Services Committee Chairman Barney Frank (D-MA), along with Representatives Miller (D-NC) and Watt (D-NC), introduced H.R. 3915, the "Mortgage Reform and Anti-Predatory Lending Act of 2007." Below you will find the full H.R. 3915 bill, a section by section summary, the NAMB Press Release, and NAMB’s Testimony presented before the HFSC.
The bill contains three sections. Title 1 will create a federal duty of care and outlaw steering. The anti-steering language will outlaw incentive compensation and YSP that varies with the terms of a loan. The section will allow indirect compensation if disclosed early in the process. This section also creates a minimum licensing standard for all originators and net worth or bond requirements of $100,000.

Title 2 creates an ability to repay standard and hardwires underwriting guidelines. Underwriting will include a verified ability to repay and take into account amortizing payments. Guidelines will also include taxes and insurance payments when calculating ratios. For refinancing, the act will define and require a net tangible benefit. For prime loans, there is a safe harbor. However, for subprime there is assignee liability and expanded rescission rights. Standards will also create a defense to foreclosure. Severe restrictions will be placed upon first-time homebuyer mortgages with negative amortization features.

Title 3 will expand the existing Section 32 of TILA by reducing the points and fees triggers and expand lender liability. Prohibitions include no balloon loans, no lending without regard to ability to repay, prohibit a pattern or practice of making such loans, restrict late fees, and prohibit the financing of any points/fees. Taken together, the expansive liability and prohibited terms and conditions will make Section 32 lending practically impossible.

This is a critical time. Do not miss this important teleconference!
Attachments:
Wednesday, October 24, 2007 NAMB Testimony presented before the HFSC
NAMB Press Release
H.R. 3915 Summary
H.R. 3915 Full Text


by Mortgage Crab November 1, 2007 12:00 AM

Pardon the redundancies - this is what I´m seeing:
FWD qooted >

"They are not kidding about brokers will be facing extinction. If this bill passes only bank will be able to do No Cost Loans!

Your Rebates will be gone!
You will be out of business!
I will be out of business!
We will all be working for 30% commission at some bank."

EMERGENCY TELECONFERENCE BY NAMB!!!! NAMB Teleconference to Discuss H.R. 3915

1. Write the e-mails directed below!!!
2. Attend the teleconference on Thursday or Friday

The Vote on H.R. 3915 is on November 6, 2007 that proposes to eliminate YSP(rebate). Our industry faces extinction if every one of us does not voice our opinion. This bill is not only about you,the mortgage broker; this is also about our rights as individuals to determine our own financial destiny and independence Go to congress.org and find your representative. Type in your zip code and then it will ask you to choose Federal or state reps. Choose Federal.

Make sure to example below... Email Printed Letter to:

1. George W. Bush (R)
2. Senator Barbara Boxer (D-CA)
3. Senator Dianne Feinstein (D-CA)
4. Representative John Campbell (R-CA 48th) **
5. Arnold Schwarzenegger (R-CA)

Think about how many people you know in the mortgage industry and how devastating this would be to California´s economy! I´ve never sent a more important email than this. The Vote on H.R. 3915 is on November 6, 2007 that proposes to eliminate YSP(rebate). Our industry faces extinction if every one of us does not voice our opinion. This bill is not only about you, the mortgage broker; this is also about our rights as individuals to determine our own financial destiny and independence. Who is to say that the government can pass legislation to force us, as homeowners, to take a par rate and possibly pay upfront origination costs? Each individual has their own unique financial plan and tax goal. One year it may be better to take a par rate and pay origination, and another year it may be better to take a higher rate and not pay upfront costs or even somewhere in between. Isn´t that why we have financial planners, CPAs, and mortgage brokers? We need loan options tailored made for an individual. That´s why we need all sorts of loan options and mortgage brokers to work individually with each unique homeowner in the United States. Let´s get real, we were not all created equally in credit status, tax brackets, or finances. If the federal government believes they can cookie cut the perfect loan for everyone, then we have truly lost what America is about...Financial Freedom. I would highly suggest we all write our congressmen today. Managers, please take the time right now to have every person in your office stop and write a letter or email. Please contact NAMB or CAMB today, if you need a sample letter and send one off today. You cannot rely on others to save your job. Let´s ban together and be heard! Please forward this email to others in the industry. Below is what I found while searching the web... write all these below. You can easily email them with a click of a button. CA Go to congress.org and find your representative.

Type in your zip code and then it will ask you to choose Federal or state reps.

Choose Federal. Make sure to see example below...

This is from NAMB below...

RE: National Teleconference to Discuss H.R. 3915 the "Mortgage Reform and Anti-Predatory Lending Act of 2007"

Mortgage brokers are facing extinction. The U.S. House of Representatives is considering a bill that will fundamentally change the way we are paid, outlaw YSP, and legislate underwriting guidelines into law. Additionally, we fear that all sub prime lending will cease to exist due to excessive lender liability. It is important that you read this memo.

We are calling upon our members to respond as never before. To save our industry, we are asking you to learn about this threat and then contact your congressman. TIME IS CRITICAL. The bill became public last week. The U.S. House of

Representatives Financial Services Committee will vote next week.

LEARN…These are free calls.

Step 1: We have scheduled two information teleconferences. Please choose ONE of the two. The first is scheduled for:

Thursday, November 1st at 1:00pm EST (12:00pm CST, 11:00am MST, 10:00am PST), and

THURSDAY: 1-877-238-4697 Pass code: 453723.

Friday, November 2nd at 7:00pm EST (6:00pm CST, 5:00pm MST,4:00pm PST).

FRIDAY: 1-800-214-0745 Pass code: 648439.

There will be 500 lines for each of the calls. Please call in early to guarantee a spot. You will be placed on hold with music until the moderator begins the teleconference.

RESPOND. We have prepared sample letters for your use in writing to or calling your congressman. These will be sent to our entire membership on Friday. Important warning: The vote is now scheduled for Tuesday, November 6. Please respond before next Tuesday.

More information is contained below. However, please call in to our conferences and respond so that we can preserve the way we do business and the subprime mortgage market.

Commentary: We urge you to read the balance of this memo and the attached information before you listen to our teleconference.

On Monday, October 22, 2007, House Financial Services Committee Chairman Barney Frank (D-MA), along with Representatives Miller (D-NC) and Watt (D-NC), introduced H.R. 3915, the "Mortgage Reform and Anti-Predatory Lending Act of 2007." Below you will find the full H.R. 3915 bill, a section by section summary, the NAMB Press Release, and NAMB´s Testimony presented before the HFSC. The bill contains three sections. Title 1 will create a federal duty of care and outlaw steering. The anti-steering language will outlaw incentive compensation and YSP that varies with the terms of a loan. The section will allow indirect compensation if disclosed early in the process. This section also creates a minimum licensing standard for all originators and net worth or bond requirements of $100,000. Title 2 creates an ability to repay standard and hardwires underwriting guidelines. Underwriting will include a verified ability to repay and take into account amortizing payments. Guidelines will also include taxes and insurance payments when calculating ratios. For refinancing, the act will define and require a net tangible benefit. For prime loans, there is a safe harbor. However, for subprime there is assignee liability and expanded rescission rights. Standards will also create a defense to foreclosure. Severe restrictions will be placed upon first-time homebuyer mortgages with negative amortization features. Title 3 will expand the existing Section 32 of TILA by reducing the points and fees triggers and expand lender liability. Prohibitions include no balloon loans, no lending without regard to ability to repay, prohibit a pattern or practice of making such loans, restrict late fees, and prohibit the financing of any points/fees. Taken together, the expansive liability and prohibited terms and conditions will make Section 32 lending practically impossible.

by core November 1, 2007 12:00 AM

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