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Industry head calls for delay of CFPB rules

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Mortgage Professional America | 26 Sep 2013, 05:30 AM Agree 0
Banks won’t be ready to follow new mortgage rules slated to take effect Jan. 1, according to the head of an industry trade group
  • Michelle | | 26 Sep 2013, 10:37 AM Agree 0
    The lenders that are able to implement the new rules quickly will be the ones to excel & profit, and that is how it should be. Pushing back the implementation date just helps out the bigger slower lenders. 2 bad! I say if you can't implement the new guidelines in an efficient way, then you shouldn't be in business.
  • Deb | | 28 Sep 2013, 07:11 AM Agree 0
    Banks and brokers have been aware of these changes that are coming for a LONG time. My institution started implementing them on their own in the spring of this year. Although we had some unhappy mortgage applicants who were able to go to a smaller local bank and get a mortgage at the time, the borrowers are finding out that the playing field is being leveled. No more sub-prime lending; if a borrower has a FICO of less than 620, that's a pretty good indicator that they may not repay the mortgage! I understand there are exceptions such as large medical bills, but by and large the majority of the borrowers that I see with low scores have charged off credit cards, unpaid utility collections, and generally poor payment history. If banks want to lend to these customers, then the banks should be accountable for covering those risks. Period.
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