The mortgage industry wants the Consumer Financial Protection Bureau to clarify whether mortgages subject to repurchase demands will lose their “qualified mortgage” status under the bureau’s new ability-to-repay rule.
Monday, February 25: Comments are due on the CFPB’s proposed amendments to Regulation Z (ability-to-repay rule). Tuesday, February 26: Federal Reserve Board Chairman Ben Bernanke is scheduled to appear before the Senate Banking, Housing and Urban Affairs Committee to deliver the central bank’s Semiannual Monetary Policy Report to the Congress. The Senate Finance Committee is scheduled to vote on President Obama’s nominee for Treasury Secretary, Jack Lew, the president’s former chief of staff and a former official at...
Federal regulators should consider aligning the pending risk retention rule’s “qualified residential mortgage” standard with the “qualified mortgage” standard under the ability‐to‐repay rule the CFPB finalized on Jan. 10, Federal Reserve Governor Daniel Tarullo said. Defining QRMs as QMs would eliminate the downpayment requirement initially proposed for QRMs and allow greater access to credit for borrowers than a more stringent QRM definition, he said at a Senate Banking, Housing and Urban Affairs Committee hearing on...
CFPB Remains on Radar of Hostile House GOP. The activities and influence of the CFPB will be a subject of keen interest to hostile Republicans on the House Financial Services Committee, according to the committee’s recently published agenda for the 113th Congress. The committee said it will scrutinize the CFPB’s regulatory, supervisory and enforcement initiatives to make sure they protect consumers against unfair and deceptive practices without stifling economic growth, job creation or reasonable access to credit. “In...
Various segments of the financial services industry are struggling with the CFPB’s trial disclosure programs proposal, with some of the trade representatives appealing to the bureau for some changes or assistance. The proposed policy would allow companies to test new consumer disclosures on a case‐by‐case basis. The CFPB would approve limited‐time exemptions from federal disclosure laws to enable the companies to conduct the trials, and the bureau would use the resulting information to improve its disclosure rules and model...
Some mortgage servicers face capacity issues when it comes to the plethora of new regulatory requirements and need outsource assistance, but the rest of the industry will need help with the process requirements and planning, according to a compliance service provider. “While all mortgage servicers are facing challenges in staying compliant with the industry’s many changing regulations, the nature of those challenges varies by the organization’s size and require varying solutions,” said Loren Morris, senior vice...
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