The House has passed a CUNA-backed regulatory relief bill, the Mortgage Choice Act (H.R. 1153) by a 280-131 vote. The bill, which also passed the House in the last Congress, would provide relief to mortgage lenders by excluding certain charges from the points and fees calculation.

“The Mortgage Choice Act is a common-sense piece of legislation that would bring more consistency to the lending process, providing consumers with more access to mortgage credit and more choices in credit providers,” said CUNA President/CEO Jim Nussle. “This has seen bipartisan support in this and the previous Congress, and CUNA will continue our work to move it forward in the process.”

Qualified mortgages (QM) cannot have a points and fees value of more than 3% of the loan amount.

The bill would remove the following from the points and fees calculation:

  • Title insurance purchased from a company affiliated with the lender (purchases from a non-affiliated title insurer currently do not count against points and fees); and
  • Escrowed homeowners insurance premiums.

The bill aligns with CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation.