I do not have a crystal ball, but if I did have one, one of the things I would like to look into it and see is Will There Be Changes To The Consumer Financial Protection Bureau (CFPB) In 2017? The Dodd/Frank Act has been a major topic even before it was enacted, and one of the most controversial component of the Dodd Frank Act was the CFPB.
The CFPB has had a significant impact on the Lending Industry. Some of it good, but much of what the CFPB has imposed on the Lending Industry especially those related to the QM Rules, have had a negative impact in:
- Borrower's ability to qualify for mortgages
- Delays in closings
- Significant increase in costs.
One of the first changes the CFPB made was to lower the Debt-To-Income Ratio's, this change along significant the buying power if Borrowers. A reduction in the Debt-To-Income Ratios was needed, but the CFPB in my opinion went beyond what was needed.
Requiring Borrowers to have to wait 3 days after they have received their Closing Disclosure has caused needless delays in Borrowers being able to close on a property. There needs to be transparency in Lending, but this change has cause delays beyond the 3 day waiting period, because Lenders now need to go through additional quality control procedures before sending out the Closing Disclosure.
The addition of new quality control procedures have resulted in Lenders hiring additional staff to preform those duties. Additional staff means additional costs, which are then passed on to the Borrower.
The incoming administration has promised changes to the Dodd/Frank Act, and maybe even eliminating it. Know one knows what the Dodd/Frank Act will look like in 2017. I for one hope the changes include doing away with the 3 day waiting period to start with. Presently the CFPB has very little oversight, the CFPB only reports to is the President, making them a very powerful agency.
Will There Be Changes To The Consumer Financial Protection Bureau (CFPB) In 2017? I do not have a crystal ball, but I think it is a pretty safe bet that under the new administration the answer to that question is YES!
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George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
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