The regulator estimates that the move will prompt a jump in mortgage originations. The rule is largely unchanged from an earlier proposal despite concerns raised by mortgage companies.
Regulators in some states controlled by Democrats are poised to increase their oversight of consumer protection laws as the CFPB’s focus is expected to shift under the incoming Trump administration.
The bureau’s fall regulatory agenda listed December as the date for issuing three final rules among several other items. None of the items has been issued so far.
The state’s proposal to establish Community Reinvestment Act requirements for nonbank mortgage lenders was met with opposition from the Mortgage Bankers Association.
A Connecticut appeals court affirmed a trial court’s verdict that was in favor of the Connecticut Department of Banking revoking 1st Alliance Lending’s mortgage license.
The bureau said many homeowners reported that their servicers pushed them to take on new, higher-interest loans instead of keeping their existing mortgage.