Government Affairs

Government Affairs

At the core, CAMB’s basic public policy objective is to increase access to home ownership and housing affordability for all Californians. To that end, CAMB actively pursues positions on bills in the state Legislature regarding first-time home buyer assistance, simplifying modifications to the mortgage loan origination process, Residentail Mortgage Lending and California Finance Lenders Laws, California Debt Limit Allocation Committee and Mortgage Credit Certificates, and real estate transactions in general.

At the federal level, CAMB has responded to legislative and regulatory issues of concern to the industry and supports the ongoing effort to restructure federal laws relating to mortgage lending.

A summary of specific legislation of interest to CAMB at any given point in the session is available to CAMB members and through local CAMB Legislative Committee Chairs and the CAMB office in Sacramento.


CAMB Hails Supreme Court Decision Oakland Predatory Lending (020505)

What We Have Been Working On

This is just a sampling of our legislative and regulator activities that protect our industry.

January 2005
The Modesto Bee featured Jon Eberhardt in a story about mortgage industry regulation. The article ran on January 16.Circulation: 95,067

Began work with Governor Schwarzenegger’s office to introduce CAMB’s proposal to assist families who have lost their homes due to natural disaster. Jon Eberhardt’s “FEMA is not enough” proposal is before the Governor’s office and Randle has scheduled a meeting with CAMB and key State officials to discuss a relationship between the Association and the State’s Office of Emergency Services.

An official CAMB statement in response to the California Supreme Court Decision regarding the Oakland City Ordinance. The statement was sent to all news media as well as to legislator offices

November 2004
On learning of the Oakland City Attorney’s plans for a predatory lending press conference, Randle mobilized the legislative committee and responded with immediate media outreach. Randle identified the event, prepared a media statement and attended the event to correct the record, define what predatory lending really is and highlight the industry’s ongoing efforts to identify and root out fraudulent behavior. Randle continues to work with the legislative committee to develop a series of predatory lending press conferences throughout the state to highlight the adverse affects of local city ordinances on the lending process.

August 2004
Randle drafted a CAMB resolution for submission to the California State Legislature. The resolution declared California a “high cost state” and encouraged the President and Congress to take action to raise the FHA and Conforming loan limits. Randle worked with the California Association of Realtors and the California Building Industry Association to join CAMB in submitting the resolution. Both groups agreed to partner with CAMB in this endeavor.

Brokers Should Be Ready to Respond to Protect the Industry
By Forrest Campbell and George Duarte

HUD Moves RESPA Rule to OMB
As promised, the U.S. Department of Housing and Urban Development (HUD) is moving forward with RESPA reform and has made their recommendation to the U.S. Office of Management and Budget (OMB)—the next step in the federal regulatory process. It is unclear if HUD has amended the rule to account for the 50,000 comments they received from stakeholders, or if they simply moved ahead with their initial proposal. There are rumors coinciding with the recent resignation of HUD Secretary Mel Martinez that OMB staff was already “informally” reviewing the proposed HUD rule in an effort to expedite approval while Congress was recessed.

We do know that prior to the rule being finalized, OMB and Congress will take public comment and input.

Key members of Congress reacted strongly and swiftly to protect the industry
• Congressman Don Mazullo, Chairman of the House Small Business Committee promised a public Congressional hearing in the coming weeks, possibly culminating in a lawsuit to stop the rule.
• Senator Richard Shelby, Chairman of the Senate Banking Committee, questioned the timing of the action suggesting that HUD was trying to “sneak” the rule by Congress during the holiday legislative recess.

Stand By to Act!
The CAMB Legislative Committee members are currently analyzing the proposed rule in its current form and will make recommendations on what actions should be taken to protect the industry and its ability to serve consumers. When the plan of action is finalized, they will be calling in the troops (CAMB membership) for support!

CAMB urges members to be prepared to act immediately with phone calls, letters, e-mails, and telegrams to President Bush and congressional representatives. Your response to a “call to action” in this matter will be crucial in CAMB’s effort to modify the rule—before it harms the industry. You may also be asked to mobilize other brokers to maximize these efforts.

CAMB will provide more information and direction soon! Watch for e-mail alerts and stand ready to respond!

Below are some topics related to Members. To learn more about these topics/issues, we invite you to become a CAMB member. Click here

DRE Issues (pdf documents)
Advertising Requirements | Advertising Submittal

HUD Issues (pdf documents)
Industry Letter—American Land Title Association Mortgage Bankers Association of America National Association of Home Builders National Association of Mortgage Brokers National Association of REALTORS. December 8, 2003 The Honorable Mel R. Martinez Secretary U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, D.C. 20410 Dear Secretary Martinez: The undersigned organizations represent the nation’s housing and real estate finance industry. We have been proud to join with President Bush and you in support of the goal to expand opportunities for homeownership for minorities by 5.5. million families by the end of the decade. Read More…

NAMB Proposed Disclosure Form

FTC Study-Executive Summary—This study of over 500 recent mortgage customers in an experimental setting finds that the mortgage broker compensation disclosure proposed by the Department of Housing and Urban Development (HUD) is likely to confuse consumers, cause a significant proportion to choose loans that are more expensive than the available alternatives, and create a substantial consumer bias against broker loans, even when the broker loans cost the same or less than direct lender loans. Similar adverse effects were found for two alternative versions of the disclosure. Read More…

NAMB Response to HUD Rule—Chairman Ney, Ranking Member Waters, Members of this Subcommittee, I am Neill Fendly, the current Government Affairs Chair and Past President of the National Association of Mortgage Brokers (NAMB), the nation’s largest organization exclusively representing the interests of the mortgage brokerage industry. We appreciate the opportunity to address the Subcommittee today on behalf of the nation’s mortgage brokers on the Department of Housing and Urban Development’s (HUD) recently proposed rule (Proposed Rule) amending Regulation X, the implementing regulation for the Real Estate Settlement Procedures Act (RESPA). Read More…

OMB Letter Dated 032204—Dear Mr. Jackson: Thank you for your letter providing notice that the Department of Housing and Urban Development (HUD) is withdrawing from Office of Management and Budget (OMB) review a draft final rule titled “Real Estate Settlement Procedmes Act (RESP A) -Improving the Process for Obtaining Mortgages”. This rule) submitted to OMB on December 16, 2003, would increase competition and inform conswner choice by making changes to the settlement procedures covered by RESP A. Read More…

OMB Letter Dated 120303—Consumer Federation of America Consumers Union International Union, UAW National Association of Consumer Advocates National Community Reinvestment Coalition National Consumer Law Center U.S. Public Interest Research Groups December 3, 2003 Honorable Joshua B. Bolten Director Office of Management and Budget Eisenhower—Dear Director Bolten and Dr. Graham: As we understand that HUD’s proposed RESPA rule may soon be sent to OMB for review and clearance, it is important for the representatives of homeowners to emphasize the important issues in this significant rulemaking. Over the past several months, we have found our views mischaracterized in support of significant changes to the rulemaking and feel it is necessary to restate our concerns. Our position, which we have stated repeatedly in public testimony and commentary, is as follows: Read More…

Jackson Letter—March 22, 2004 Dr. John Graham Administrator Office of Information and
Regulatory Affairs Office of Management and Budget Re: RESP A Final Rule (RIN 2502-AH85)—Dear Dr. Graham: The Administration is strongly committed to efforts to simplify, improve, and lower costs associated with obtaining home mortgages. However, due to the significant number of questions raised about the draft [mal RESP A rule referenced above, I write today to advise the Office of Management and Budget (OMB) that the U.S. Department of Housing and Urban Development (HUD) has decided to withdraw the above referenced rule from OMB review. Read More…

Manzullo Letter Dated 101304—Given prior actions of thc Department of Housing and Urban Development (HUD) concerning attemps to finalize regulations implementing the ReaI Estate Settlement Procedures Act (RESPA), I am requesting that no efforts be made to finalize any rules. This includes any submission of final draft rules to the Office of Management and Buget (OMB) while Congress is in recess- Taking this approach will ensure that all interested policymakers will have the opportunity to act before any ruIes becomes a fait accompli. Read More…

Biggert and Hinojosa Letter Dated 030404—We are writing to express our concerns about a final rule submitted to the Office of Management and Budget by the Department of Housing and Urban Development (HUD) that significantly change the Real Estate Settlement Procedures Act (RESPA). While we are supportive of efforts to simplify and improve mortgage transactions for consumers, we are writing to urge you to reject this rule as final and return it to HUD with instructions to issue a revised proposed rule and seek additional public comment. Read More…

IRS Issues (pdf documents)
ADVICE The Internal Revenue Service (IRS) recently issued a Technical Advice Memorandum (TAM 9648003) concerning the proper classification of mortgage agents (loan officers) for employment tax purposes. Read More…
Letter Ruling 9648003, August 9, 1996

Federal Issue (pdf/word documents)
FCC rule banning blast faxing without permission. Supporting documents. FAX Ban | FAX Ban Gets Stay

CAMB supports and encourages raising FHA loan limits so more families can achieve homeownership! Supporting documents. FHA loan draft | 061604 John Weicher statement | 061604 Jonathan Kempner on HR 4110 | Jon Eberhardt statement to the committee on Financial Services, Housing and Community Opportunity (pdf documents)

Proposition 64 Protects Small Businesses from Frivolous Lawsuits. The California Association of Mortgage Brokers (CAMB) is asking you to join Governor Arnold Schwarzenegger and Californians to Stop Shakedown Lawsuits—a broad-based coalition of more than one thousand businesses, chambers of commerce, community groups, non-profits, and taxpayers across the state—in supporting Proposition 64. The initiative will close a loophole in California law that lets lawyers file frivolous shakedown lawsuits. Supporting documents. About prop 64 | Examples | Fact Sheet (pdf documents)