The CFPB outlined rules it will be considering regarding simplifying mortgages points and fees to bring greater transparency to the mortgage loan origination market.
The CFPB is considered rules which would require an interest-rate reduction when consumers elect to pay discount points, require lenders to offer consumers a no-discount-point loan option, and ban origination charges that vary with the size of the loan.
The CFPB will also be considering regulations regarding mortgage loan originators’ qualifications and compensation. The rule would set qualification and screening standards for all mortgage originators and would prohibit paying steering incentives to mortgage loan originators.
The CFPB has requested comments from the public and industry on the outlined rules before they are formally proposed. A Small Business Review Panel will also be engaged before a rule is formally proposed.
The CFPB expects to formally propose these rules by this summer and to finalize the rules by January 2013.
Read the outline of the residential mortgage loan origination standards rulemaking.