National Mortgage Professional Magazine – Robert Ottone
One hundred and eighteen members of the U.S. House of Representatives have petitioned Richard Cordray and the Consumer Financial Protection Bureau (CFPB) via a letter to put a one-year halt to impending qualified mortgage (QM) ruling. With over 25 percent of the House demanding the implementation be put off for a year, one wonders whether or not the CFPB has to listen or will go ahead with planned legislation.
Many trade groups, including NAMB—The Association of Mortgage Professionals, have petitioned the CFPB regarding QM and its potentially devastating effects on the housing market. It seems, now, that with the backing of 118 House members that the industry’s concerns are being listened to. “Not only are consumers harmed by the new regulations, but the disparate treatment of thousands of small business owners will also damper the economy,” said John H.P. Hudson, vice president of regulatory affairs at Premier Nationwide Lending.
“A NAMB poll of its members (a third of which are minority/women owned businesses) revealed that 73 percent of mortgage brokers are considering either changing business models, closing their doors to work for bank entities, or leaving the business altogether … who wins with less competition?”