MARKET PULSE / SANDRA LANE
READY, SET GO!
Lenders gear up to conduct business
under new CFPB rules.
s the mortgage industry gets ready to function
in accordance with new CFPB guidelines,
reactions are varied. Some think the change
will bring positive results, and they are ready
to switch over to the new system on January
10. Some still have not reached a decision
on whether they want to operate under the
new Qualified Mortgage (QM) standards or
not, believing that a number of markets are
not well served by them. Others wonder who
will be able to stay in business because of the
tremendous cost of converting to this new way
of doing things. Some think changes will have
to be made to the rules to enable them to work
properly. And there are others who say these
rules really won't change anything and that
another housing bubble is likely to occur.
RETURNING COMMON SENSE TO LENDING
The new CFPB rules and regulations are
seen as a welcome improvement that will
prevent unsavory home lending practices,
believes Carrie Johnson, senior policy
counsel for the nonprofit Center
for Responsible Lending (CRL).
50
"What we are seeing is a
decade worth of change
in a one-year time frame.
FIRST OF ALL, THE
SHEER VOLUME OF
THE REGULATIONS IS A
CHALLENGE. SO FAR IN
2013, WE'VE HAD 23
DIFFERENT PROPOSED
OR FINAL REGULATIONS,
all affecting mortgage
lending. That's an
incredible volume, and
it's overwhelming."
