The House vote on controversial mortgage bill H.R. 3915 passed by a vote of 291-127 today.
Reactions were mixed, with Democrats somewhat pleased with the result, and Republicans expressing their disapproval.
“What we have today is a bill that cannot undo what happened, but makes it much less likely it will happen in the future,” said Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee.
“Congress does two things very well: one is nothing and two is overreact,” said Rep. Tom Price, R-Ga. “While we have had a period here where some credit, some loans, were unwisely given, but allowing individuals, allowing Americans to purchase homes and realize their American dream is a good thing.”
“This kind of murky language would invite litigation from every borrower who misses a payment,” said Rep. Ed Royce, R-Calif.
The bill will now go to the Senate, where it will face more hurdles, which if successful, will make its way to the President before ultimately becoming law.
“But the administration has concerns with the bill as drafted because it includes provisions that unduly restrict access to credit for potential homebuyers and reduce re-financing opportunities for current homeowners,” the administration said in a statement.
The bill has been highly criticized by mortgage brokers and many other members of the mortgage community who feel the bill is a blanket solution to a very complex issue.
Among other things, the bill will create a nationwide licensing system for mortgage brokers and loan officers, prohibit steering, ban lenders from originating loans borrowers don’t have the ability to repay, outlaw incentive compensation and YSP that alter the terms of a loan, and prohibit the financing of points and fees.
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