Richard's Real Estate Thoughts: NAMB testifying about FHA before Congress

The NAMB has announced that it will testify before Congress Thursday, October 8, at the House Subcommittee on Housing and Community Opportunity.

Expected time is 2pm. Some of the major points in the prepared statement are:

• Consumers benefit from working with brokers, many of whom who have working relationships with one or more banks
• Mortgage brokers facilitate competition in the marketplace and help drive down origination costs
• NAMB consistently advocated for a licensing and registration regime for all mortgage originator which has helped establish higher level of professionalism in the broker industry
• NAMB supports the goal of appraiser independence, but HVCC is failing to provide any greater protection for appraisers. The statement reviews many of the problems from HVCC.
• NAMB strongly opposes FHA's decision to follow in the footsteps of the HVCC
• Concerns are discussed about the new FHA refinance guidelines and issues with appraisal portability

The statement points to findings from "A 2005 independent study conducted by economists at three major universities concluded that broker-originated mortgages are less costly to the borrower than lender-originated mortgages."

The NAMB prepared statement does not mention lender paid premiums. This is an developing issue in which regulators are threatening restrictions that I think will limit consumer choice and make mortgages more expensive. This issue is still in the comment phase with the Federal Reserve. I understand that the NAMB comment is expected in November. 

Here is a copy of the the prepared testimony.

Here is a link to hear the testimony.

The NAMB is working hard in the face of massive new regulation and legislation. Their efforts to boost our industry and to protect the consumers access to affordable home financing is worthy of our support.