H.R. 9459, Mortgage Lender Deregulation. Quorum's AI analysis reads it as a net cost — and names who bears it.
H.R. 9459 · Net cost
What it does
This bill relaxes mortgage lending regulations by allowing lenders to miss closing cost estimates by up to $500 or 5% without penalty, permits consumers to waive the 3-day closing disclosure waiting period, and shields lenders from liability for errors made by settlement agents if they exercised 'reasonable diligence.' It also expands APR tolerance to 0.125 percentage points and gives lenders a 60-day cure period after first notice of violations before penalties apply.
The analysis names mortgage lenders and originators — and 3 more groups — among the beneficiaries.
The cost
The $500 or 5% aggregate variance allowance effectively permits systematic underestimation of closing costs, particularly harmful to first-time homebuyers and lower-income borrowers who cannot absorb surprise costs at closing.
The analysis put a high warning level on this bill. Transparency scores 55%, and the analysis found no provisions unrelated to the bill's subject.
Who is behind it
Filed by Scott Fitzgerald.