Alert May 15, 2012

CFPB Stresses Fairness and Transparency in Qualified Mortgage Rulemaking

CFPB Deputy Director Raj Date indicated that the CFPB is fully aware of industry concerns over the final qualified mortgage rule, but stressed the importance of fairness and transparency in the rule. Mr. Date stated that in promulgating the rule, the CFPB is considering a range of issues, including: (1) a careful definition of lower-risk qualified mortgages to minimize compliance burdens; (2) market stabilization; (3) avoidance of disincentives that would prevent lenders from making “prudent, profitable loans in the non-traditional segments”; (4) encouraging competitive market conditions; and (5) issuing a “sensible rule that works for the market throughout the credit cycle,” while remaining attentive to the fragility and risk-averseness of the current market. The CFPB is expected to issue the final rule this summer. Click here for Mr. Date’s prepared remarks.