Mortgage lending industry representatives were unanimous in their view that the Consumer Financial Protection Bureau’s ability-to-repay rule and “qualified mortgage” standard, as currently constituted, may severely restrict access to mortgage credit on multiple levels. Testifying earlier this week before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, James Gardill, chairman of the board of WesBanco, Inc., said on behalf of the American Bankers Association that the QM rule will limit mortgage lending because the QM guidelines narrow lending parameters. “Even within the QM framework, many concerns remain that could limit credit availability to a diverse group of consumers,” Gardill said. Debra Still, chairman of the Mortgage Bankers Association, said...
In addition to having the most failed metrics, CitiMortgage was found to be in “widespread” noncompliance with the timeliness requirement to notify a borrower of any missing documents in his modification application.
Yet another plan to reshape the mortgage market has been published, this one from noted housing economist Mark Zandi, and Ellen Seidman, once the nation's top S&L regulator.
MBA pushes for GSE AU engines to be synchronized. Meanwhile, a factoid of mortgage history: Treasury chief Paulson wanted Fannie and Freddie put in receivership.
The treatment of balloon loans under new federal rules is one example where regulation is taking a broad brush approach that disadvantages community banks.
RSS