A House Republican asked the CFPB to stop so- called regulation by enforcement and to clarify the use and role of the guidance it has issued. Rep. Blaine Luetkemeyer, R-MO, recently sent a letter to six agencies, including the CFPB, expressing concerns that guidance that does not go through notice-and-comment rulemaking has been used as the basis of enforcement actions. “Many of my colleagues and I hear frequently from financial institutions that guidance promulgated ...
t is still a big question mark how Kathy Kraninger, President Trump’s nominee to head the CFPB, will perform in Senate confirmation hearings. But the widely different reactions from Republican and Democratic lawmakers signal a contentious and drawn-out process. The White House last week officially sent the nomination of Kraninger to the Senate. The Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing on the nominee, which could ...
CFPB oversight has not significantly reduced the volume of mortgage originations, but it has changed the kinds of loans being made, the Federal Reserve Bank of New York found. Critics of the CFPB have argued that its activities increased compliance costs and ultimately reduced the availability of financial services to consumers. However, a recent New York Fed staff report found there’s little evidence supporting that theory in the mortgage business. The market share of ...
In response to the CFPB’s request for information on adopted rules, industry groups especially want the bureau to make some changes to the qualified mortgage standards under the ability-to-repay rule, including making the “GSE patch” permanent. The ATR rule generally requires a maximum debt-to-income ratio of 43 percent in order to get QM status. Special rules apply to agency mortgages, however, including a temporary provision that loans eligible for sale to the ...
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