CFPB's Balancing Act: Protecting Consumers While Preserving Credit Access

April 29, 2013
American Banker  
mortgage lending news

The Consumer Financial Protection Bureau (CFPB) may release final mortgage rules within the next few weeks, requiring lenders to underwrite loans that satisfy the "qualified mortgage" and ability-to-repay rules. Kelly Cochran -- the agency's assistant director for regulations -- has helped develop mortgage rules that address servicing, disclosures, loan originator compensation, high-cost mortgages, and appraisals. In the future, the agency may consolidate the mortgage disclosures for the Truth-in-Lending Act (TILA) and the Real Estate in Settlement Procedures Act (RESPA), expected to be released later this year. In addition to issuing mortgage rules, the CFPB has sought data in other key consumer financial services markets to better understand the challenges and risks facing consumers. In the TILA/RESPA consolidation, it is preparing to perform quantitative testing of the forms with a diverse group of 850 consumers in several different U.S. regions. When asked about exemptions for smaller institutions and rural counties, Cochran said the CFPB received "extensive comment" about possibly negative impacts of the ability-to-repay rule on small creditors and believed that the issues required further exploration.
Web Link
- May Require Paid Subscription 







Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`