Clay Cosponsors Consumer Mortgage Choice Act

Bipartisan Amendment to Dodd-Frank Act Would Expand Access to Affordable Mortgage Credit While Safeguarding Consumers

WASHINGTON, DC – March 29, 2013 – (RealEstateRama) — Congressman Wm. Lacy Clay (D) Missouri, a senior member of the House Financial Services Committee and Ranking Member of the Subcommittee on Domestic & International Monetary Policy and Technology is cosponsoring H.R. 1077, the Consumer Mortgage Choice Act.  The bipartisan bill would amend the historic Dodd-Frank Act to amend the definition of a Qualified Mortgage (QM).  “Our bill will promote access to affordable mortgages for qualified borrowers without weakening the strong safeguards that were included in the original Dodd-Frank legislation,” said the Congressman.

Currently, under Dodd-Frank, a qualified mortgage cannot have “points & fees” in excess of three percent of the total amount of the loan.  H.R. 1077 makes certain clarifications as to how that threshold is calculated, in order to expand access to affordable mortgages for moderate income and underserved borrowers.

H.R. 1077 would modify how “points & fess” are calculated.  Specially, the bill would exclude from that (QM) calculation:

(1)Fees paid to affiliated title companies

(2)Salaries paid to loan originators

(3)Insurance and taxes held in escrow

(4)Loan level pricing adjustments

(5)Lender-paid compensation to mortgage brokers

These common sense changes will promote access to affordable mortgages for qualified buyers by ensuring that more properly underwritten loans meet the qualified mortgage standard.

MEDIA CONTACT:
STEVEN ENGELHARDT (314) 504-4029

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Clint Zweifel was sworn in as Missouri's 45th State Treasurer on Jan. 12, 2009. At 35, Clint became Missouri's youngest State Treasurer in more than a century. He was elected to the position Nov. 4, 2008.

As Missouri State Treasurer, Clint is the State's Chief Financial Officer. His office manages Missouri's $20 billion in annual State revenues, directs the State's banking services and manages Missouri's $3.5 billion investment portfolio. The State Treasurer's Office is responsible for safeguarding $450 million in unclaimed assets turned over to the State by banks, businesses, insurance companies and government agencies, and tries to find the rightful owners. Clint also serves on the management boards of several public entities.

Contact:

State Treasurer Clint Zweifel
P.O. Box 210
Jefferson City, MO 65102

Phone: (573) 751-8533
Fax: (573) 751-0343

Jon Galloway
(573) 751-7595 - Office
(573) 418-2923 - Cell

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