Robert L. Ehrlich, Jr. press release, June 30, 1995

NEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1407 York Road, Suite 304 Lutherville, Maryland 21093 315 Cannon House Office Building Washington, D.C. 205 1 5 FOR IMMEDIATE RELEASE: CONTACT: Richard Cross June 30, 1995 202-225-3061 EHRLICH HELPS LOCAL BUSINESS OVERCOME RESTRICTIVE HUD REGULATIONS Congressman Robert L. Ehrlich, Jr. (R-2nd., MD) has intervened to ensure a Towson firm will be able to continue a program which makes it easier for low- and moderate-income Americans to purchase homes. PHH US Mortgage Corporation, a national mortgage banking firm with an office in Towson, has developed and implemented an innovative program enabling small banks to offer consumers a full array of mortgage loans. This program has produced average loans of $73,400— 40 percent less than the average conventional loan, and 1 5 percent less than the average FHA loan. “The need for such a program is obvious,” Congressman Ehrlich stated. “It allows community banks with limited resources to make mortgages available to people who otherwise might never afford to buy a home.” Banks participating in the program receive a $150 service fee. This fee reimburses the bank for obtaining income and debt information from prospective borrowers and determining their eligibility. It is fully disclosed and does not increase the cost to the consumer. Existing federal law prohibits the payment of kickbacks or fees, so independent bankers first sought legal guidance from the U. S. Department of Housing and Urban Development in January 1993.