Will There Be Changes To The Consumer Financial Protection Bureau (CFPB) In 2017?

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Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

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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 Info about the author:

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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 Info about the author:

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, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Rainmaker
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

George...We are talking about a government opperation, I would be surprised if they didn't change some stuff

Dec 31, 2016 05:52 PM #1
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

George, I think it will be bulldozed.  It'll happen sometime around January 23rd.  

Dec 31, 2016 06:08 PM #2
Rainmaker
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Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

Hi George,

All of the political rhetoric is promising dramatic (some say drastic) changes in regulation.  Hoping for the changes to be driven by common sense rather than political partisanship. 

Mel

Dec 31, 2016 07:34 PM #3
Rainmaker
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Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

George Souto hopefully it will be tossed out on its ear...

Wishing you and yours a safe and Happy New Year's Eve and a wonderful 2017!

Dec 31, 2016 09:22 PM #4
Rainmaker
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Sandy Padula and Norm Padula, JD, GRI
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

Happy New Year, George Souto  . Thanks for your post today and I sincerely hope Dodd-Frank is repealed. Congress needs to take a critical 'eye' to review all laws on the books. So many are detrimental to our current needs.

Jan 01, 2017 07:17 AM #5
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi George - You're probably right, but I long ago lost any hope that the govenment changing stuff will make it better. Happy New Year - may 2017 be your best year ever.

Jan 01, 2017 09:15 AM #6
Rainmaker
4,198,872
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I wouldn't argue with you on this one.  Though, I'm guessing it won't be as great a change as some are hoping for.

Jan 02, 2017 04:51 PM #7
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

After the lending industry and Wall Street fraudulently destroyed the US 

economy, the idea and taking off controls scraes the crap out of me.

Jan 02, 2017 07:15 PM #8
Rainmaker
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Moe Dadseresht
Austin Skyline Realty Inc. - Austin, TX
Buyer/Seller agent

Hi George Souto  I'am afraid there would be some changes for the sake of change! But remember where we were in 2008 and why some of rules were put in place.

 

Thanks.

 

Jan 02, 2017 10:03 PM #9
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