Republicans Supporting Stricter Loan Origination Rules Receive Half as Much Money from Mortgage Brokers
May 13, 2010 - Five Senate Republicans crossed party lines to support a Wall Street Reform measure to rein in predatory loan practices; on average they received half as much money from the mortgage brokerage industry than the Republicans who opposed the measure.
The amendment, sponsored by Jeff Merkley (D-OR), would prohibit loan originators from offering yield spread premiums to mortgage brokers and liar loans to borrowers with insufficient income, both incentive structures for mortgage brokers to sell loans to consumers at higher interest rates.
Under the terms of the amendment, mortgage brokers will no longer be able to receive increased compensation for making loans at higher interest rates, and borrower income levels will have to be verified.
The five Republicans who joined all of the Democrats to support the amendment received on average $11,550 from mortgage brokerage interests, such as the National Association of Mortgage Brokers, whereas the rest of the Republican caucus received on average $24,330 from the industry.
Methodology: Includes reported contributions to congressional campaigns of selected legislators in office on day of vote, from Mortgage bankers and brokers interest groups, January 1, 2004 – December 31, 2009. Calculated Senate averages exclude Senators who have recently been appointed and are not planning on campaigning for this office, in this case, Senator George LeMieux. Totals exclude contributions made to Presidential campaigns.