The FAMB Focus

FAMB Government Affairs Update by Tom Morcom, Committee Chair

Attend the FAMB Convention & Trade Show, July 15 through July 18 and Bring Yourself Up-To-Date on Legislative and Regulatory Issues

Here is a summary of what you can learn at our convention ...

On Federal Issues

RESPA - The Old & The New
Federal Legislative Update
Federal Legislative Luncheon

On Florida Issues

The Safe Act & The New FS 494
Florida's 2009 Legislative Session Update and Luncheon
Office of Financial Regulation's Compliance Course

And here are some other current regulatory issues to consider ...

Regulation Z, Truth in Lending Act

Remember to review changes to the Truth in Lending Act that become effective July 30, 2009.

Regulation Z - Truth in Lending Act changes include

* Early disclosure to consumers

* Waiting periods after Early Disclosures and Corrected Disclosures

*The seven day waiting period and the three day waiting period

* A more precise definition of a business day

* Timing of fee collections and up front fee restrictions

President Obama Proposes a New Consumer Financial Protection Agency

President Obama proposes a new Consumer Financial Protection Agency. Here are some of the agencies' goals for Mortgage Loan Originators and mortgage lending.

* Ban unfair terms and practices or place tailored restrictions on product terms and provider practices, if the benefits outweigh the costs.

* Impose heightened duties of care on financial intermediaries that reflect reasonable consumer expectations.

* Help ensure that compensation practices do not create conflicts of interest between intermediaries and consumers.

* Require mortgage brokers to owe a duty of best execution among available mortgage loans to avoid conflicts of interest between themselves and the homeowners, as well as a duty to determine the mortgages they sell are affordable to borrowers.

* Ban unfair practices such as "yield spread premiums" - side payments from lenders that encourage mortgage brokers to push consumers into higher priced loans than they qualify for - and require brokers to be paid over time based on continued loan performance rather than in a lump-sum at closing.

* Restrict or ban prepayment penalties, which can lock borrowers into bad loans.

* Require loan originators or sponsors of securitizations - where loans are bundled and sold to investors - to retain five percent of the credit risk in order to keep skin in the game.

* Ensure that banks, non-banks, and independent mortgage brokers all play by the same rules, and no lender or broker falls between the cracks of supervision or enforcement.

Florida Association of Mortgage Brokers has partnered with the National Federation of Mortgage Professionals (NFMP) to expand participation in the Federal Legislative and Regulatory process

Join Florida Association of Mortgage Brokers - If you are not a member of the Florida Association of Mortgage Brokers shouldn't you join and make sure FAMB continues to work for you in Tallahassee and Washington?

Contribute to the Florida Association of Mortgage Brokers PAC - If you are already a member of the Florida Association of Mortgage Brokers shouldn't you contribute to the association's PAC and make sure FAMB continues to work for you in Tallahassee and Washington?