American Banker reports Richard Cordray, head of the Consumer Financial Protection Bureau (CFPB), stated the agency will not mandate a 20 percent down payment in new underwriting rules for low-risk loans. Testifying before the Senate Banking Committee Sept. 13, he was responding to a question about the CFPB’s qualified mortgage (QM) proposal. It was not clear if he would also oppose a 20 percent down payment to designate certain loans as qualified mortgages. MHProNews has learned Cordray said the CFPB does not have the authority to rewrite or bypass Dodd-Frank.
(Photo credit: ABC News—Richard Cordray)