In an attempt to provide more clarity to lenders on the Consumer Financial Protection Bureau(CFPC)’s “Know Before You Owe” mortgage disclosure rule, the agency has proposed “additional tolerance provisions, clarified a partial exemption for housing finance agencies, extended the rule’s coverage to all cooperative units, and provided more clarity about privacy and the sharing of information,” according to nationalmortgagenews.
However, the proposed rule did not clear up “technical” errors in mortgage disclosures, leading some investors earlier this year to refuse to purchase loans because the CFPB could not guide them in curing these errors. The mortgage industry has stated compliance is nearly impossible because there are hundreds of variables to consider on the disclosure form.
The CFPB, noting it cannot address every concern, said it “would not be practicable without substantially undermining incentives for compliance with the rule” and that it “would be extraordinarily complex,”according to Richard Horn, a former CFPB attorney.
CFPB Director Ricahrd Cordray stated, “Our proposed updates will clarify parts of our mortgage disclosure rule to make for a smoother implementation process.”
MHProNews understands lenders seek certainty. If there is a problem that is not addressed, causing lenders to turn away, borrowers, lenders and the economy all lose.
Public comment is open until Oct. 15 on the proposed amendments. ##
(Image credit: housingwire)
Article submitted by Matthew J Silver to Daily Business News-MHProNews.