Video archive of the US Congress

House Proceeding 05-07-09 on May 7th, 2009 :: 0:10:50 to 0:15:30
Total video length: 2 hours 19 minutes Stream Tools: Stream Overview | Edit Time

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Randy Neugebauer

0:10:46 to 0:11:11( Edit History Discussion )

Randy Neugebauer: the mortgage. this will protect a lot of people, and i thank chairman frank for including this in the manager's amendment. and i yield back my time. thank you very much. the chair: for what purpose does the gentleman frotexas rise? mr. neugebauer: mr. speaker, i want to claim time in opposition to the amendment. the chair: the gentleman is recognized. mr. neugebauer: thank you, mr.

Randy Neugebauer

0:10:50 to 0:15:30( Edit History Discussion )
Speech By: Randy Neugebauer

Randy Neugebauer

0:11:16 to 0:11:39( Edit History Discussion )

Randy Neugebauer: speaker. you know, there are some provisions in this amendment that i support and then there's some that i don't. one of the parts of it that i do support is this amendment does call for a g.a.o. study to analyze the effectiveness of the provisions of this bill and make recommendations to congress. my onlregret is i wish we could have done the study before we implement this particular piece of legislation. as you know, section 213 of the bill requires creditors to retain an economic interest in at least 5% of the credit risk

Randy Neugebauer

0:11:40 to 0:12:01( Edit History Discussion )

Randy Neugebauer: of each loan that is not a qualified mortgage that the person sells or transfers to third party. i think this, quote, skin in the game, may be a good provision. the question is what will be the impact on small lenders and small community banks across the country? one of the things that we want to make sure is that the bill is not really clear about the

Randy Neugebauer

0:12:02 to 0:12:24( Edit History Discussion )

Randy Neugebauer: mechanism or the mechanics of how this provision would be implemented. and we're going to have to have regulatory that. i wish that ag had a study in advance of that so that we could then make sure that as we are implementing this bill and that the regulators have some direction of how to go to make sure that we implement this provision

Randy Neugebauer

0:12:25 to 0:12:45( Edit History Discussion )

Randy Neugebauer: without causing major disruption in the mortgage process. again, i wish we could have done that before. there are concerns that i have about the manager's amendment as well, mr. speaker. first of all, there is a -- rather than clarifying provisions related to broker compensation, yield spread

Randy Neugebauer

0:12:46 to 0:13:08( Edit History Discussion )

Randy Neugebauer: premiums and ensuring that all creditors are covered by an anti-steering provision, this amendment provides further inequity and confusion. congressman miller offered an amendment during the financial services committee markup that would have banning steering while financesing the closing cost and -- financing and closing costs.

Randy Neugebauer

0:13:09 to 0:13:29( Edit History Discussion )

Randy Neugebauer: in the committee chairman frank and said he and mr. miller banning insent tiesed compensation and not direct compensation. mr. miller withdrew his amendment. the manager's amendment does not reflect that agreement and make an amendment made in order

Randy Neugebauer

0:13:30 to 0:13:51( Edit History Discussion )

Randy Neugebauer: really instead of clarifying the ability of consumers to finance closing costs through rate or principals, the manages amendment removes that option through the rate completely. additionally, the manager's amendment says all origination fees must be collected upfront or all fees shall be in the rate. this means consumers agaiwill

Randy Neugebauer

0:13:52 to 0:14:12( Edit History Discussion )

Randy Neugebauer: no longer have the option of paying closing costs upfront or through the rate. they should be able to finance fees as they deem appropriate for the individual circumstances. clarifications were to expected to ensure that the preservation of this option but only the clarification made that the bill would now only prohibit this option in the manager's amendment.

Randy Neugebauer

0:14:13 to 0:14:34( Edit History Discussion )

Randy Neugebauer: you know, what does that mean? well, that means when an individual goes to their mortgage lender or to their local community bank, in the past they' had an option to say, you know, i don't need to closing cost in the loan. and maybe that would be reflected in the rate. maybe part of it would be reflected in the principal balance. but now we're going to take

Randy Neugebauer

0:14:35 to 0:14:58( Edit History Discussion )

Randy Neugebauer: awa to offer that to the individuals. and i think that's what our opposition has been to this bill from the very beginning is while we are trying to prevent predatory lending and everybody's against predatory lending, at the same time we've started down a road where we're going to limit the available products to individuals.

Randy Neugebauer

0:14:59 to 0:15:20( Edit History Discussion )

Randy Neugebauer: of these mortgages to individuals. and more importantly, we're going to cause mass confusion in the marketplace. there are things in this bill that if someone is, quote, steering, it could result in a lawsuit. and steering could be, this mortgage, if i offered you this one, would be goodeneficial to you.

Randy Neugebauer

0:15:21 to 0:15:31( Edit History Discussion )

Randy Neugebauer: but also think if i offered you this mortgage. but i think it's going to deter a lot of mortgage bankers and community bankers from offering two different options to individuals because they're going to be afraid that somehow

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