Mortgage Reform and Predatory Lending

H.R. 3915, Mortgage Reform and Anti-Predatory Lending Act, would make numerous changes to federal laws that regulate mortgage practices with the aim of combating predatory lending practices and providing certain protections to borrowers and investors.

These changes include subjecting all mortgage originators to licensing and registration requirements, establishing minimum standards for creditors, and establishing various consumer protections, such as prohibiting excessive fees for certain types of mortgages. H.R. 3915 would require loan originators to participate in a Nationwide Mortgage Licensing System and Registry, NMLSR, that would be by nongovernmental entities or HUD in coordination with the Federal Banking Regulatory Agencies.

H.R. 3915 would set the standards for this system, require HUD to determine if State Licensing procedures have met such standards, and authorizing the registry administrators to assess fees (revenues) to cover the cost of maintaining and providing access to information from the NMLSR. H.R.3915 would impose several private-sector mandates as defined in the Unfunded Mandates Reform Act, UMRA, on the mortgage finance industry, by creating a licensing and registration system for mortgage loan originators, setting new mortgage origination standards, and establish requirements for high-cost mortgages. see

http://www.cbo.gov/ftpdocs/88xx/doc8804/hr3915.pdf