The FAMB Focus

FAMB Government Affairs Update by Tom Morcom, Committee Chair

Happy Independence Day and Let Freedom Reign

FAMB's State Convention and Trade Show to be held July 15 - July 18, 2009 at the Marriott World in Orlando, Florida. There is no better place to learn of what the future holds than..."A New World of Wonders".

Now that Florida's Governor has signed the new licensing bill into law and the revisions to FS494 that were made during the 2009 Florida legislative session are set in stone, we must look forward to the changes that lie ahead of us.

This year's convention focuses on the legislative and regulatory changes that all licensed mortgage brokers, unlicensed loan originators, processors, underwriters and many more will experience in the months ahead.

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

National Federation of Mortgage Professionals Call to Action

Contact your US House of Representative member and ask them to co-sponsor HR 3044 to stop HVCC

As of May 1, 2009, the housing GSEs (Fannie Mae and Freddie Mac) no longer purchase loans from lenders "accepting appraisal reports completed by an appraiser selected, retained, or compensated in any manner by any third party." Lenders may only accept appraisal reports from a pre-approved list of appraisers or unregulated Appraisal Management Companies. This new requirement, called the Home Valuation Code of Conduct (HVCC), is bad for consumers and must be stopped.

HVCC Results in Poor Quality Appraisals and Increases Costs for Consumers

It is important to ensure that home appraisals are high-quality and accurate. However, rules to prohibit improper influence on appraisers and ensure appraisal independence should not unintentionally increase the cost of obtaining a mortgage loan for consumers. The HVCC results in poor quality appraisals and it increases costs for consumers.

HVCC Is Not an Effective Way to Prohibit Inflated Appraisals

The HVCC has resulted in increased costs and low-quality, unreliable home appraisals. There is no indication that the HVCC has actually worked to prohibit improper influence on appraisers and ensure appraisal independence.

Contact your federal representative today and ask them to cosponsor H.R. 3044 to impose an 18-month moratorium on the HVCC, which has had a detrimental impact on consumers and the housing market.

US Treasury Sets 5 Principles for the Proposed Consumer Financial Protection Agency

The administration's proposal for an independent Consumer Financial Protection Agency stands on five key principles for consumer protection. Those principles, detailed by Treasury Assistant Secretary Michael Barr, are:

1. Transparency: The agency must be able to provide reasonable disclosures to consumers that are also less burdensome to financial providers than current ones.

2. Simplicity: The agency would promote standard products and services without exotic features and terms. Financial innovation would continue, but there would be a standard basis of comparison that all consumers could use in evaluating products.

3. Fairness: The proposal seeks to ensure that disclosures don't serve to block consumers' understanding of products and to provide a mechanism for addressing unfair practices.

4. Access: The proposal seeks to ensure that the nation's fair lending laws are responsibly enforced.

5. Accountability: There should be clear lines of authority and responsibility, with one agency responsible for writing consumer protection rules and supervising providers across the financial sector.

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?