Robert L. Ehrlich, Jr. press release, October 8, 1998

NEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1407 York Road, Suite 304 Lutherville, Maryland 21093 3 1 5 Cannon House Office Building Washington, D.C. 20515 FOR IMMEDIATE RELEASE: CONTACT: J.P. Scholtes October 8, 1998 (202) 225-3061 EHRLICH’S EFFORTS TO PROVIDE MORTGAGE BROKERS WITH LEGAL RELIEF PROVE SUCCESSFUL On Tuesday, the House adopted the Conference Report for H.R. 4194, the FY 1999 VA, HUD, and Independent Agencies Appropriations Act. Included in this report is a provision championed by Congressman Robert L. Ehrlich, Jr. (R., MD-02) to protect the mortgage broker industry against frivolous class action lawsuits. “This is a win-win situation for the prospective home buyer, who benefits from a competitive housing market, and for the mortgage broker, who provides valuable products and services to home buyers,” stated Congressman Ehrlich. “I applaud the House and Senate Conferees for their hard work and diligence in providing report language that will deter the class action filings threatening the mortgage broker industry, and that compel HUD to clarify its position with respect to lender-paid broker fees.” This legislative language is consistent with Congressman Ehrlich’s legislation, The RESPA Class Action Relief Act (H.R. 1283). “While this is only step-one in reforming the many flaws in the Real Estate Settlement Procedures Act (RESPA) statute, this is a very big step for home buyers and mortgage brokers nationwide," said Congressman Ehrlich. The Conference Report language affirmatively states lender-paid broker fees were never intended to be violations of the RESPA statute. In addition,