House Committee Approves MBA-Supported Mortgage Licensing Bill

The House Financial Services Committee yesterday unanimously approved a Mortgage Bankers Association-supported bill that would smooth the path for mortgage loan originators in transition, as well as a bill aimed at jump-starting the GSE reform process.

The Committee approved H.R. 2948, the SAFE Transitional Licensing Act, which would eliminating barriers by allowing MLOs to more easily move among employers, including across state lines, by a 60-0 vote. It also approved H.R. 4560, the GSE Jumpstart Reauthorization Act of 2017, a prototype bill aimed at moving forward secondary housing market reform, which also had MBA support; and H.R. 4545, the Financial Institutions Examination Fairness and Reform Act, which addresses concerns about the manner in which lenders are examined, including improving the timeliness of examinations, ensuring examiners adhere to their agencies’ standards and creating a new, more independent examination appeals process.

MBA President and CEO David Stevens, CMB, issued a statement commending the Committee for its work and thanking Committee Chairman Jeb Hensarling, R-Texas, for encouraging bipartisan support for the bills.

“In particular, we enthusiastically supported [H.R. 2948] The SAFE Transitional Act which supports job mobility among mortgage loan originators, as well as The Financial Institutions Examination Fairness and Reform Act, which addresses a number of exam-related concerns–for both banks and non-banks,” Stevens said.

Stevens said MBA supports the broad intent of The GSE Jumpstart Reauthorization Act, most notably an extension on the limitation of preferred GSE shares and certainty regarding the regular payment of dividends by the agencies under the terms of the Senior Preferred Stock Purchase Agreements. “We continue to look forward to ongoing conversations regarding broader secondary mortgage market reforms, including housing affordability and meeting the needs of underserved borrowers and communities,” Stevens said. “MBA will continue to work with members of Congress on these and other important issues facing our industry and its customers.”

The bills now go to the House floor. MBA yesterday issued a Mortgage Action Alliance “Call to Action,” urging its members to contact their members of Congress to support these bills as they come to the House floor (