Rep. Bill Huizenga (R-Mich.) introduced a bill Tuesday containing the same language as the Mortgage Choice Act of 2013 (H.R. 3211), which passed the House last year.

The bill did not make it out of the Senate in the last session of Congress.

If Huizenga's bill, the Mortgage Choice Act of 2015, is signed into law, it would adjust the definition of points and fees under the Truth in Lending Act as applied in the CFPB's qualified mortgage rule.

The bill excludes from the computation of such points and fees the amount of any loan level price adjustment payment set by Fannie Mae, Freddie Mac, the Federal Housing Administration, or similar government entity or government-sponsored enterprise.

The exclusion would also apply to any compensation paid by a mortgage originator or a creditor to an individual person employed by the mortgage originator or creditor, and any escrow for future payment of insurance, according to the Congressional Research Service summary of the Mortgage Choice Act.

Huizenga's bill has four Republicans and five Democrats as co-sponsors. His spokesperson told CU Times the bill has not been posted publicly yet.

“Hardworking families across the nation should not be denied access to a qualified mortgage because of technicalities that are largely out of their control,” Huizenga said.

The goal of The Mortgage Choice Act of 2015 is to help low and middle income borrowers, as well as prospective first-time homeowners, realize a portion of the American Dream by owning their own home, he added.

“This legislation is narrowly tailored to promote access to affordable mortgage credit without overturning the important consumer protections and sound underwriting requirements specified by Dodd-Frank's 'ability to repay' provision. I am glad to see strong support on this important issue from both Democrats and Republicans,” Huizenga said.

Brad Thaler, NAFCU vice president of legislative affairs, said, “We thank Rep. Huizenga, the bill's cosponsors and staff for their leadership and efforts in helping ensure that the points-and-fees definition for mortgages doesn't push low- and moderate-income people from obtaining QM loans from credit unions.”

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Mortgage Choice Act Reintroduced in House

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