Dive Brief:
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The chairman of the National Association of Home Builders on Thursday urged U.S. senators to pass the Mortgage Choice Act, which is designed to ease credit restrictions that have prevented some would-be homeowners from qualifying for mortgages.
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The House easily passed the bill earlier this week and sent it to the Senate, which defeated a similar measure last year. The bill’s chances reportedly have improved this time around.
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The act’s supporters have said it would clarify the definition of “points and fees” in the Truth in Lending Act so that more loans can be classified as “qualified mortgages.” That would give borrowers more options and allow them to choose the lender and title company that is best for them. “This bill would allow more low- and middle-income families the opportunity to finance a home purchase,” Woods.
Dive Insight:
The NAHB has long supported comprehensive mortgage reform, but Woods testified at a Senate Banking Committee hearing on Thursday that the association endorses legislative reforms that can alleviate regulatory barriers restricting consumers’ access to home loans.
“Comprehensive legislation,” he said, “would serve to protect consumers with minimal disruption to the mortgage market.”