SOURCE: Primary Residential Mortgage, Inc.

November 14, 2007 13:08 ET

Proposed Mortgage Lending Reform Bill Ignites Firestorm of Industry Backlash

SALT LAKE CITY, UT--(Marketwire - November 14, 2007) - On November 6, the House Financial Services Committee approved H.R. 3915, "The Mortgage Reform and Anti-Predatory Lending Act of 2007," by a vote of 45-19. Introduced by Barney Frank (D-MA), the bill will appear before the full House of Representatives tomorrow.

In the wake of the subprime mortgage crisis, proponents feel increased regulation will protect borrowers. Yet opponents claim the legislation goes too far and would make it harder for many Americans to get loans.

"I am actually surprised that so many parts of the bill made it past this stage, but I also believe that many parts of H.R. 3915 are needed," says Dave Zitting, President and CEO of Primary Residential Mortgage, Inc. "PRMI welcomes legislation that endorses safe lending standards and rewards mortgage professionals that already adopt best practices. Nonetheless, there are some areas of H.R. 3915 that are very cumbersome for our industry. I'm not a fan of legislation that reduces competition. I believe in an open market to balance forces and ultimately help the consumer. I truly believe that this legislation will harm the borrower more than it will help."

H.R. 3915 is supposed to overhaul the way loans are offered, securitized, and regulated. Some of the bill's main components call for:

--  Instituting a licensing system for mortgage originators;
--  Establishing an "Office of Housing Counseling";
--  Creating mortgage origination standards;
--  Establishing minimum standards on all mortgages; and
--  Affording consumers greater protection for high-cost mortgages.
    

Because of the heated debate, numerous changes are likely as H.R. 3915 passes through the House and Senate before reaching President George Bush.

About Primary Residential Mortgage, Inc.

Headquartered in Salt Lake City, Utah, Primary Residential Mortgage, Inc. (PRMI) was founded by Dave Zitting, Jeff Zitting, and Steve Chapman in 1998. Since its inception, PRMI has evolved from a four-person business to a nationwide multi-billion dollar operation with 800 employees working in over 150 Branches. The company is licensed in 47 states. Branches operate under the PRMI brand or as DBAs as part of the Divisional Joint Venture and Consortium Partner programs. Serving all segments of the market, PRMI is a privately-held, debt-free company that focuses primarily on traditional loan products.

Contact Information

  • CONTACT INFORMATION

    Dave Zitting
    President and CEO
    Primary Residential Mortgage, Inc.
    Email Contact
    801-596-8707