Contradictory rules have created a mortgage lending “minefield” for bankers that threatens the housing recovery, ABA President and CEO Frank Keating wrote in a Wall Street Journal op-ed this morning.
The minefield, Keating said, results from the Housing and Urban Development Department’s decision to use disparate impact analysis to enforce fair lending laws on the one hand, and the CFPB’s Qualified Mortgage standards on the other hand.
To clear up the issue and reduce uncertainty for bankers and their customers, Keating said, regulators should modify the rules to ensure no conflict exits. If they do not “clear the minefield” before the CFPB’s January 10 compliance date, he explained, “the ultimate casualties will be the nascent housing recovery and the American home buyer.”
Read the op-ed.