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Is the CFPB’s new tool setting up the mortgage industry to fail?

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Mortgage Professional America | 16 Jan 2015, 09:20 AM Agree 0
The launch of the regulator’s “Owning a Home” tool has caused uproar in the mortgage industry, and many claim the tool contradicts rules the CFPB already has in place.
  • D Hite | | 16 Jan 2015, 10:54 AM Agree 0
    The only thing dishonest in all the scenarios is the government!
  • Anonymous | | 16 Jan 2015, 11:18 AM Agree 0
    If any single one of us did this either in print or electronically online we would be fined, sanctioned, and the site would be taken down. There is no mention of fees, APR, and what it takes to derive that rate. It is illegal to advertise rates without disclosing these factors in the same size font and type face.

    Unacceptable. This site needs to be taken down and those responsible for it need to be held to the identical standards that every one of us are held to. Pay the fines, deal with the sanctions, and then repost it following the rules they themselves set for us all.
  • Viva la Revolucion | | 16 Jan 2015, 12:09 PM Agree 0
    Haven't they done enough damage to the "industry" (or what's left of it)? The ATR rules alone have devastated my client base, and all I hear are ads from lenders offering lower fico scores, higher LTVS, one day out of BK, one year out of foreclosure etc., etc. What about the person with perfect credit (well over 800 scores), low LTVS (some well under 50%), enough assets to pay off the mortgage several times over, that happen to have a 44 back end when some idiot cubicle bureaucRAT decided it should be 43 and the lenders are too scared of buy backs and CFPB audits to be able to make a business decision on their own? They've taken all the ability to think rationally away from underwriters, and made the entire industry cower in the fetal position in the corner. It's truly disgusting what they've done to this industry and what they are trying to do to the entire country. WAKE UP SILENT MAJORITY:
  • #readytodosomethingelse | | 16 Jan 2015, 12:15 PM Agree 0
    They never disclose to clients how they arrive at a certain rate posted in the banks window. Then it is up to us to give them the best rate after all of the add on's like c/o, fico, ltv costing as much as 6% and then explain why they can't get the posted rate based on info they never see. Then the client tells us the bank has a better rate unitl they get there. This is one more attack on the mortgage broker.
  • concernedagain | | 16 Jan 2015, 12:47 PM Agree 0
    Your average homeowner is not going to be aware of how much a rate can actually cost. This will put competition between banks, brokers, etc. to quote the lowest rate when in fact the costs associated with this rate may never be recouped. If this is the way CFPB wants to "help" then go the extra step and have the costs associated with the rate also quoted.
  • Wm Matz | | 16 Jan 2015, 01:28 PM Agree 0
    By focusing just on rates, CFPB is turning the public into rate whores, perpetuating the fundamental problem with our mortgage system. FIRST, the borrower should determine what mortgage PROGRAM best fits their financial/life plan. Only then should they decide which rate and point combination is best. But the process - especially at banks -is not designed to find the best program fit. Same problem with buyers shopping for the house, then looking for financing. 2 many things being done backwards.
  • backfire! | | 16 Jan 2015, 01:48 PM Agree 0
    The status quo is a direct result of deregulation bust and boom cycle! If you vote for democrats or republicans you are the cause of it and 100% deserve it! ! Wake Up America! Vote 3rd party or Elizabeth! :)
  • It's Good, Isn't It? | | 16 Jan 2015, 02:00 PM Agree 0
    Are you referring to the same silent majority that Viva la Revolucion is? Third parties are good, and people should recognize that the "two party" system is really the same, or two sides of the same coin.
  • Anne E James | | 16 Jan 2015, 02:13 PM Agree 0
    This administration is already in the business of promoting mortgages-subprime FHA mortgages! I expect next step is Consumer Financial Protection Bureau will be doing mortgages with the students answering the phones taking the applications. They violate their own rules with no consequences, use our industry as a growth source of revenue for a behemoth bureau and expect us to sit back and go away. New acronym:"CAB" Consumer Abuse Bureau.
  • David Kelsay | | 16 Jan 2015, 02:47 PM Agree 0
    Look, we're dealing with a huge, expensively renovated (at taxpayers' expense) headquarters that holds about 900 budding young progressive lawyers with a hard-on for anything that looks like a financial services company, and mortgage-lending-related in particular. They have no idea what they're doing. It's a lot like when the bank I worked for in 1983 hired a newly minted Harvard MBA and put him in charge of originations - he destroyed the place because he thought he knew better than everyone else. They could use the same amount of energy to track down and criminally prosecute all of the originators, third parties, and borrowers who violated the regs that were already in place and that served everyone well for 30 or 40 years. But that wouldn't fit their populist agenda.
  • MtgGeek | | 19 Jan 2015, 09:53 PM Agree 0
    Sigh . . . Just more busy work for CFPB empty suits trying their damnedest to justify their paychecks at the expense of the industry to the detriment of the bewildered consumer. It is clear to all there does not exist a single soul at the CFPB who has any experience in mortgage origination. What a sham.
  • MtgGeek | | 19 Jan 2015, 10:07 PM Agree 0
    @David Kelsay: Well said. The CFPB (Confused Financial Policy Braindead) is currently run by highly-educated fools.
  • Thomas Morgan | | 22 Jan 2015, 01:27 PM Agree 0
    Forget everything that's disturbing about this initiative. To me, the fact that the effort seems to endorse the lendingtree, bank rate or zillow lead-generation model of advertising, bothers me. I'm all for transparency, but the whole trick to lead gen is to low-ball the market to get people to call; those people are then told why the CAN'T get the advertised rate.

    Bass-ackwards solution to a perceived problem, not a real problem. They didn't like that over 50% of all applicants only checked with one lender. They should teach people HOW to shop, not encourage them to chase unlikely price improvements in an already incredibly complicated process.
  • Tim Blowe | | 23 Jan 2015, 10:59 AM Agree 0
    What a complete joke. The CFPB still allows lenders and realtors to have marketing agreements in place where the lennder is more or less paying for their share of the business they are being spoon fed. In a mjority of these situations the borrowers are paying substantially higher rates to cover the cost of these agreements. The realtors are being pressured by their brokers to use the in house lender to justify the fees they are pocketing. In the meantime the borrower does little if any shopping and thus get the short end of the stick. Yet nothing changes. It is amazing that these agreements are still out there.
    Now I am sure there will be responses that they provide competitive pricing and are only paying for the convience. We all know this is a crock. Greed has driven this and the borrower gets screwed.
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