Both CUNA and NAFCU questioned the logic of requiring registration of federally regulated mortgage lenders, such as credit unions, but that provision of the bill remained in tact. Another item credit unions are interested in is exempting prime loans from the bill's requirements. An amendment that would have accomplished this failed on the House floor by a vote of 172-249.

"Innovations in the mortgage industry in themselves are good and useful, but were conducted in such a complete unregulated manner and led to this crisis," Financial Services Committee Chairman Barney Frank (D-Mass.), who co-sponsored the bill, said. He applauded the core, bipartisan group who worked on the mortgage reform bill.

"This legislation achieves two very important goals: implementing reforms that will help protect consumers from predatory lending practices, and preserving working Americans' access to consumer credit," Bachus stated. "While H.R. 3915 is not a perfect bill–no bill ever is–it has been significantly improved through bipartisan negotiations."

While not entirely pleased with the bill in its current state, Thaler commented that this was just one step in the process. He noted that Senate Banking Committee Chairman Chris Dodd (D-Conn.), a presidential primary candidate, has stated recently that he intends to move his own mortgage reform legislation.

"Looking ahead," CUNA's Magill added, "the measure's future in the Senate is far from assured; we are working there–as opposed to those organizations which flat out oppose the bill–to craft final legislation that does take into consideration the unique role and track record of credit unions, and does not result in unintended consequences for them."

Aside from the registration and licensing system for mortgage originators, H.R. 3915 would establish a minimum standard to consider a borrower's ability to repay the loan and would attach a limited liability to secondary market securitizers. The legislation will also expand consumer protections for high-cost loans, provide protections for renters of foreclosed homes, and establish an Office of Housing Counseling through the Department of Housing and Urban Development.

One of the amendments accepted to the bill was language similar to Congressman Paul Kanjorski's (D-Pa.) Escrow, Appraisal, and Mortgage Servicing Improvements Act, which provides consumer protections specifically in the mortgage servicing, appraisals, regulatory oversight and escrow accounts.

An amendment offered by Congresswoman Carolyn Maloney (D-N.Y.), which was accepted, would require lenders to offer alternatives to prepayment penalties and cap the penalty.

Representative Adam Putnam's (R-Fla.) amendment for the Government Accountability Office to conduct a study on the availability and affordability of mortgages following enactment of H.R. 3915 was also agreed to.

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