PAC Funds. Flexing the CAMB Muscle and telling the Mortgage Broker story to Legislators and Regulators.
This is one of the primary benefits of your CAMB membership…the sophisticated and unrelenting efforts of your elected CAMB leaders representing our Mortgage Broker interests to our State and Federal elected officials, as well as to all the State and Federal regulatory agencies (eg: DRE, HUD and DOC). We have been very successful on your/our behalf and will continue passionately and creatively promoting, and even fighting for you. Your membership assists this effort, and we need to be continually growing so talk to your friends and associates about joining our chapter! Continue reading below to increase your understanding regarding our legislative efforts, the infrastructure we have created, past successes and current initiatives.
We at CAMB have been very successful on the legislative front, in fact have actually set the benchmark and lead the momentum on several issues including:
Predatory Lending
Limitations on loan fees
Liability issues
Yield Spread Premium
Conforming Loan Limits
Maintaining access to direct underwriting with Government Sponsored Entities (FNMA, FMHLC)
If not for our efforts, our industry as we know it would have been obsolete years ago, and many originators out of business. We're able to successfully leverage our relatively small membership into significant power and influence at the State Capitol and the Halls of Congress.
We maintain a very proactive and aggressive agenda on a go forward basis and many are dedicating significant amounts of time and energy to your cause. However, success also requires a great deal of financial support. Money, money, money! Money is the mother's milk of all politics. CAMB has 3 special funds to support our efforts in various areas.. The State CAMBPAC, the FedCAMBPAC, and the Legislative Fund.
StatePAC : This is the “State Political Action Committee Fund” It is used for strategic donations to State Senate and Assembly Members whose platform is most closely aligned with CAMB goals and initiatives. We also utilize this fund for individuals that are running for office or may be asked to sit on an influential board.
FedPAC: This is the “Federal Political Action Committee Fund” . It is used for Congressional and Senate races in California, and may be allocated to other key campaigns by Federal Officials across the country that sit on key Congressional Committees, or who are influential and aligned with CAMB initiatives. The PAC Funds are very strictly regulated and managed through a specilly designated CPA firm that is required to provide regular reports and reconciliations according to State and Federal law.
Legislative Fund: This “Legislative Fund” is a fund dedicated to the operations of our legislative lobbying efforts. There are many expenses related to our successes including travel, meals, marketing materials, salaries of CAMB staff and others. This fund supports our “back office” and operational expenses.
Current Initiatives:
HR 1461, Section 123-Rep. Gary Miller (R-CA) Conforming Loan Limits (Federal Bill) - This bill is a holdover from last year's session. HR 1461 is the House version of the bill to reform Fannie Mae and Freddie Mac. Section 123, inserted into the bill with the help of Rep. Gary Miller, would adjust conforming loan limits in high cost metropolitan statistical areas (MSAs) to the median home price of that area if the median home price exceeds the current conforming loan limit, capped at 150% of the conforming loan limit. This bill would have the effect of raising the conforming loan limit in California to approximately $550,000, and would provide millions in savings to consumers and make housing more affordable in California by lowering mortgage financing costs.
AB1455 (Yee) - New Home Buyer Bill of Rights (State Bill) - This bill is also a hold over from last year's session. AB 1455 establishes a number of rights and protections for consumers who are purchasing a new home in the state of California. This bill would give consumers the right to choose their source of mortgage lending when purchasing a new home, without being discriminated against using an outside lender or structuring a sales contract to discourage the use of an outside lender. This bill would require the new home builder to provide a disclosure at the time of the sales contract notifying the buyer of their rights to use any source of mortgage lending in the purchase of their new home.
AB790 (Yee), Protecting the Consumer and Promoting Your CAMB Membership (State Bill) - This bill protects the integrity of your CAMB membership and educational designations from CAMB by making it a Dept. of Real Estate licensing violation to misrepresent yourself as a CAMB member or as having a CAMB educational designation when you do not. The CAMB logo and educational designations are a symbol to consumers that you are an honest and knowledgeable mortgage broker. CAMB is working to improve the integrity of that symbol with this bill.
AB 2890 (Ridley-Thomas), Protecting the Consumer and Promoting Your CAMB Membership (State Bill) - This bill is a companion bill to AB790 on misrepresentation, but applies to Dept. of Corporation Licensees. This bill gives the Dept. of Corporations the ability to bar from employment by any corporate licensee, any loan officer who misrepresents themselves as a CAMB member or as having CAMB educational designations when they do not. This bill is the first step towards building individual loan officer accountability under the Dept. of Corporation's two corporate lender licenses, the California Finance Lender License (CFL), and the Residential Mortgage Lender License (RML).
Past Successes:
Predatory Lending - This subject flared up and caught fire in 2000, starting with the Predatory Lending bill that first passed in North Carolina, and then spread across the country. CAMB led the way in 2001 when this bill was presented here in California, and was the first state to completely defeat this bill in its first attempt here. CAMB set the model of developing an organized and rational defense of our industry, by a proactive public relations campaign, and by building and leading a brand new mortgage industry coalition to defeat this anti-consumer bill. The bill was reintroduced the next year by a more powerful and well connected sponsor, and gained a great deal of traction, but with a huge amount of work, political organizing and skill, CAMB led the efforts to greatly modify the wording of the bill to something that made sense for the consumer and our industry. CAMB also has led the way in fighting Predatory Lending ordinances in such cities as Oakland, San Jose and Los Angeles, with great effect. The CAMB Legislative Committee remains ever vigilant, ready to respond when this subject is brought up, and will continue to defend consumers rights to choose lenders and loan programs.
RESPA Reform - In 2001, HUD unveiled a radical, comprehensive Proposal to reform the Real Estate Settlement Procedures Act (RESPA) that would have had the effect of putting most mortgage brokers out of business, and was heavily biased in favor of big banking interests. It would have caused a very unlevel playing field in the marketplace, and would have place consumers at a disadvantage in choosing loan programs available. Once again, CAMB and NAMB enjoined a vigorous campaign over many months, at great expense of time and money, which resulted in HUD withdrawing their Proposal indefinitely. Again, CAMB and NAMB are vigilant, and are watching HUD, because the HUD Secretary says that they are still working on reforming RESPA, and reserve the right to issue a new Proposal at any time. If they do, we will be on it, and will fight it if it discriminates against mortgage brokers, and hurts consumers.
Industry Professionals
SV CAMB, P. O. Box 361957, Milpitas, CA 95036, Phone: (408) 404-5202, Fax (408) 404-5202 | Copyright ©