CFPB Director Richard Cordray defended his agency’s track record on mortgage rules and consumer protection, while emphasizing that the CFPB will not expect “perfection” in the months after the Qualified Mortgage standards take effect next year.
Cordray said that the CFPB has been less strict in its mortgage rulemaking than the Dodd-Frank Act’s statutory text would have been, pointing out that the CFPB crafted several exceptions for small lenders and servicers and created a QM safe harbor. He also emphasized his agency's post-rulemaking implementation guidance.
When ABA President and CEO Frank Keating mentioned the risk of private litigation under the rules, Cordray predicted that “you’re not going to see some outburst of litigation in the first months after this takes effect.” Cordray also noted bankers’ concern about the effects of the rule on the mortgage market but called some of those concerns “overblown.”
Read Cordray’s remarks.
View the CFPB’s new one-page QM guide.
View ABA’s mortgage resources.