Tuesday, May 30, 2006 - Legislation Being Considered to Revitalize Rural Housing

Tuesday, May 23, 2006 - House Considers Legislation Dealing with the Section 8 Program

Legislation is also being considered to reform the Section 8 voucher program.  Four years ago the Administration proposed a dramatic reform of vouchers that would block grant the program to housing authorities.  IREM joined many other housing groups to oppose this proposal.  Now, an alternative has been proposed that would make smaller, more reasonable reforms to the program.  These include streamlining physical inspection requirements, and simplifying tenant income verification.   The House Financial Services Committee will consider the bill this month.

Thursday, May 11, 2006 - Federal Reserve Set to Hold Summer Hearings on Home Equity Lending

The hearings will focus on:
· Predatory lending and the impact of the HOEPA rules and similar state and local laws on the subprime lending market;
· Nontraditional mortgage products and reverse mortgages; and
· The process by which consumers select lenders and loan products in the subprime marketplace.

The hearings are scheduled as follows:

· June 7, 2006 at the Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois;
· June 9, 2006 at the Federal Reserve Bank of Philadelphia, Ten Independence Mall, Philadelphia, Pennsylvania;
· June 16, 2006 at the Federal Reserve Bank of San Francisco, 101 Market Street, San Francisco, California; and
· July 11, 2006 at the Federal Reserve Bank of Atlanta, 1000 Peachtree Street, N.E., Atlanta, Georgia.

Each hearing is scheduled to run from 8:30 am to 4:00 pm. The Federal Reserve last held hearings under HOEPA in 2000. Those hearings served as the platform for the revisions to Regulation Z that went into effect in 2002.

Saturday, May 6, 2006 - Anti-Predatory Lending Legislation

Montgomery County, Maryland – Oops!

March 3, 2006

Montgomery County Council approved Bill 36-04 for all loans secured by residential properties to become effective March 8, 2006.  The ordinance limits lenders from charging more than 1.5% for all fees and points including discount, YSP, origination and junk fees.  The ordinance further authorizes the fine for discriminatory lending to be up to $500,000 per violation up from $5,000. What?

March 7, 2006

The day before the March 8, effective date, more than three dozen mortgage lenders and securitizers  vow to completely halt business activity in Montgomery County, Md. No residential loans in Montgomery County.

March 8, 2006

Circuit Court Judge Michael Mason issued an injunction that delays implementation of the anti-discriminatory lending ordinance for four months which was supposed to be instituted today. The temporary injunction was issued pursuant to a lawsuit filed by several mortgage brokers and the American Financial Services Association.

March 14, 2006

The same Montgomery County Council introduced a bill that would repeal the recently enacted portions of the anti-discriminatory lending law. Cant’ sell a house, can’t buy a house, can’t close a loan in the County.  Hmm, I think we better rethink this one.

April 25, 2006

MCC public hearing

Federal Law Update

A Federal predatory lending bill has been the works for several years.  House Financial Services Consumer Credit Subcommittee Chairman Spencer Bachus, R-Ala plans to introduce a national predatory lending bill similar to the anti-predatory lending bill passed by North Carolina in 1999.  It was chosen as a model because compliance has not forced lenders to stop serving subprime borrowers but will probably go further to address liability, arbitration and how to restrict interest rates and fees.

The National bill will include a “Federal Preemption provision” which would be a problem for Montgomery County, Maryland.

Wednesday, May 3, 2006 - Junk Fax Final Rule Announced