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Mortgage brokers defend fees

The National Association of Mortgage Brokers, reacting to lending industry reform legislation introduced today by Reps. Brad Miller (D-N.C.), Mel Watt (D-N.C.) and Barney Frank (D-Mass.), said that borrowers could be hurt by the proposal to define "high-cost loans" as any with points and fees of at least 5 percent -- down from the current 8 percent threshold.

Mortgages that meet the high-cost definition are subject to the Home Ownership and Equity Protection Act (HOEPA), which -- according to the FTC -- "prohibits equity stripping and other abusive practices in connection with high-cost mortgages."

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From the mortgage brokers' press release:

The association says it is in favor of other provisions of the legislation, such as national standards for loan originators and a straightforward disclosure of fees.

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The Congressmen sponsoring "the Mortgage Reform and Anti-Predatory Lending Act of 2007" also have a press release, issued today:

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