Hartland Vermont Real Estate

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					                State of Vermont
         House of Representatives

                         Montpelier, Vermont
                        House Resolution
                                  H.R. 18
  House resolution relating to high mortgage fees
   Offered by: Representatives Turner of Milton, Dickinson of St. Albans
Town, Acinapura of Brandon, Adams of Hartland, Bissonnette of Winooski,
Botzow of Pownal, Branagan of Georgia, Clark of Vergennes, Clerkin of
Hartford, Donaghy of Poultney, Fagan of Rutland City, Higley of Lowell,
Kitzmiller of Montpelier, Komline of Dorset, Lenes of Shelburne, Lorber of
Burlington, Marcotte of Coventry, Myers of Essex, Savage of Swanton,
Scheuermann of Stowe, Shand of Weathersfield, Smith of Mendon and Wilson
of Manchester
   Whereas, the Vermont Mortgage Bankers Association (VMBA) is a
professional membership association representing the Vermont mortgage
lending industry, and it comprises Vermont banks, credit unions, licensed
lenders, brokers, and other affiliates who provide support services to the
Vermont real estate market, and
   Whereas, the VMBA’s primary mission is to educate mortgage lenders and
other professionals involved in real estate finance, and
   Whereas, the VMBA encourages sound and ethical business practices and
promotes the welfare of the mortgage lending industry in the state of Vermont,
   Whereas, the VMBA has expressed its serious concerns over excessive fees
being charged typical Vermont borrowers who are trying to purchase or
refinance their homes, and
   Whereas, Freddie Mac and Fannie Mae provide essential liquidity to the
mortgage market that enables lenders to give long-term and low interest rate
loans to finance homes, and
   Whereas, because of the serious credit losses in some markets, significant
fees known as “adverse market delivery charges, or loan level pricing
adjustments” have been added, and
   Whereas, these fees have been painfully high for a typical home borrower
for some time, but now they are becoming significantly higher for nearly
everyone, and
   Whereas, borrowers are literally walking away from purchase and refinance
transactions because they are unable to pay thousands of dollars in additional
fees, and
   Whereas, in addition to the excessive fees that have been added to nearly
every loan delivered to the secondary market, the credit standards have
tightened to an extent that they are strangling the market, and

                                                                 VT LEG 246559.1
   Whereas, the majority of serious mortgage issues are centralized in seven
states, but the whiplash credit-tightening standards have been implemented
across all markets, regardless of their credit track record and the stability of
their real estate market values, and
  Whereas, Vermont consistently ranks as one of the lowest for foreclosures
and delinquencies in the United States, with statistics at less than one-half the
average for the entire country, now therefore be it
  Resolved by the House of Representatives:
   That excessive fees should be eliminated, and that fees should only be
assessed where loans have performed poorly, and be it further
   Resolved: That those regions of the country where lenders have a proven
track record of properly originating, underwriting, and delivering good loans to
the markets should be rewarded, not penalized, and be it further
   Resolved: That the Clerk of the House be directed to send a copy of this
resolution to Vermont’s Congressional Delegation.

                                                                    VT LEG 246559.1

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