Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NEW: Rep. Capito Questions 'Rigid' CFPB Mortgage Rule
WASHINGTON (6/18/13, UPDATED 10:24 a.m. ET)--Opening today's House subcommittee hearing on "Examining How the Dodd-Frank Act Hampers Home Ownership," Rep. Shelly Moore Capito (R-W.Va.) said it could be the very consumers that are meant to be protected by the Consumer Financial Protection Bureau's Abilty-to-Repay mortgage rule that could be harmed by unintended consequences of the rule.

Capito, chairman of the House Financial Services subcommittee on financial institutions and consumer credit conducting today's hearing, said low-income consumers, and those in rural areas with low property values, could find the ability-to-repay rule eliminates mortgage lenders' ability to engage in "relationship lending." She said "case-by-case, local lending" could disappear because of "rigid mortgage lending rules" proposed by the CFPB.

Today's hearing, at which Credit Union National Association witness Jerry Reed will detail credit union concerns with the CFPB qualified mortgage (QM) regulations when he testifies, is the second in the subcommittee's on this issue.  The ability-to-repay rule was issued in conjunction with the QM rule. Reed is chief lending officer at Alaska USA FCU.

Rep. Sean Duffy (R-Wis.) said there appears to be a bipartisan agreement on the need to fix some parts of  the Dodd-Frank Act, though other members spoke in favor of that law's provisions. For instance, Rep. Carolyn Maloney (D-N.Y.) said Dodd-Frank is intended to show "we learn from our mistakes."

Watch CUNA's News Now for more.


RSS print
News Now LiveWire
.@TheNCUA open board meeting starts at 10 a.m. ET tomorrow. It is board member J. Mark McWatters' first. Watch @NewsNowLiveWire
11 hours ago
.@CFPB is proposing to oversee larger nonbank auto finance companies for the first time at the federal level.
11 hours ago
.@CUNA's Bill Hampel moderates a discussion on the future of credit unions in the post-100 million member world. http://t.co/kcXykiRQVn
14 hours ago
#Breaking: QE likely to end next month, @federalreserve says #NewsNow #Market http://t.co/u7Fb5l5fwM
14 hours ago
.@Experian study confirms that building a credit history is beneficial to financial marginalized communities. 64M are "credit invisibles"
14 hours ago