HB 2269 Summary

• Adds new prohibitions on mortgage brokers making residential mortgage loans, including requirements to verify borrower's ability to repay based on fully indexed rates and documented income/financial resources.

• Prohibits "churning" (knowingly refinancing loans without reasonable, tangible net benefit to borrower) and predatory lending intent to acquire property through foreclosure.

• Requires mortgage brokers to disclose when offering lower investment grade loans and obtain borrower's written consent if borrower may qualify for higher investment grade loans with better terms.

• Prohibits charging fees for services not provided, misrepresenting third-party charges, and compensating or coercing appraisers to influence property valuations.

• Requires mortgage brokers to reasonably supervise activities of licensed loan originators employed by the broker.