Can I persuade a vote?

Phil Gingrey, M.D.
Washington, DC Office
119 Cannon House Office Building
Washington, DC 20515

Dear Dr. Gingrey:

Introduction
I am a mortgage broker of 7 years and have been in the mortgage and finance business for over 23 years. I have had the opportunity to work for large and small banks as well as owning and operation my mortgage company. The passing of H.R. 3126 threatens my business and potentially my ability to continue to serve my customers as an independent business owner.
Consumer Finance Protection Agency (CFPA) Proposed
The Administration has proposed a (CFPA), which targets mortgage brokers with regulations that will effectively eliminate my brokerage’s mortgage origination channel for my customers, limiting competition, increasing prices, and reducing service. My customers will be forced to obtain mortgages directly from banks, which are not currently equally bound by disclosure requirements about compensation and fees.
New Agency Could Effectively Eliminate the Mortgage Broker Origination Channel
H.R. 3126 has been introduced in the House of Representatives to create the new Consumer Finance Protection Agency (CFPA). While the legislative language does not specifically reference mortgage brokers, the broad authorities H.R. 3126 provides to the new agency could severely harm the mortgage broker origination channel and my business if the Administration moves forward with its plans outlined in its White Paper.
Mortgage Brokers Provide a Valuable Service to Consumers
As a broker, I find the most appropriate mortgages for my customers by searching through the products of multiple lenders to identify the best loan rates and terms. I also guide homebuyers through the complicated loan process.
Because the lenders are saving money on personnel and overhead costs associated with the processing and originating of a mortgage, the loan products that I offer are obtained from the bank at wholesale prices. I am compensated by the customers for the cost of processing and originating the loan. A consumer can pay my compensation by selecting a slightly higher interest rate, through a yield spread premium instead of at the time of closing. As a mortgage broker, I am required by existing federal law to disclose all of our fees to the borrower. Even after being compensated for my work, we are able to offer consumers mortgage loans at rates that are competitive to retail rates that would be offered if a consumer went directly through a lender.
While the mortgage crisis has revealed problems across the mortgage industry, ethical mortgage brokers have always provided a valuable service to their customers. Consumers benefit from our ability to shop around for the best rate and from the individualized assistance that we offer through the process.
Conclusion
I appreciate the effort to protect consumers, but the proposed legislation only provides another layer of government oversight without true value to the consumer. This bill will ultimately hinder healthy competition which only benefits my customers and your constituents. Please know that I appreciate your efforts and write to you with information that I feel is valuable to my industry and to the people of Georgia and our nation. I trust that when you are armed with this information you will make the right choice. I look forward to your vote.

Yours Truly,

Vicki Nix