The CFPB Outlines Possible Mortgage Rules

The rules the bureau is considering would simplify mortgage points and fees and bring greater transparency to the mortgage loan origination market. The CFPB expects to propose these new rules this summer and finalize them by January 2013.

Among the proposals under consideration are those that require an interest rate reduction when consumers pay discount points, require lenders to offer a no discount point loan option, and require flat origination fees only, not those that are a percentage of the loan.

The CFPB is considering setting more rigorous standards for mortgage loan originators employed by a financial institution.  It would like to expand SAFE act licensing to all MLOs, not just the current registration process enjoyed by employees of credit unions.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance, NCUA.