The Obama administration should phase in the impending mortgage rules over a period of time, rather than implementing them all at once in January, ABA President and CEO Frank Keating said Friday. In a letter to Treasury Secretary Jacob Lew, Keating emphasized the economic risk of the six major rules taking effect at once.
“There is no crisis that justifies imposing the [rules] without allowing a modest and targeted transition period,” Keating said. “The macroeconomic impact of curtailed mortgage lending due to uncertainty or inability to comply has to be the Administration’s most important consideration.”
Keating added that despite “valiant” efforts, bankers and their vendors will be unable to meet the January deadline due to the extensiveness of the rules, system testing and late changes to the rules themselves. If bankers cannot comply, he said, they will reduce their mortgage lending accordingly.
Read the letter.