Industry Seeks CFPB Clarification On Alternative Transaction Rule
September 26, 2011
Top lender groups are asking the Consumer Financial Protection Bureau to provide a little more clarification to its recent interim final regulation on alternative mortgage transactions, particularly when it comes to the definition of such a transaction. The American Bankers Association and the Mortgage Bankers Association both support the CFPBs inclusion of renegotiable rate balloon and shared appreciation mortgages within the AMT definition. However, they both asked that some of the regs commentary be clarified to explicitly state that preferred rate loans with fixed rates and price level adjusted mortgages, otherwise considered variable rate transactions, also be identified as examples of alternative mortgage transactions.