In a speech Wednesday defending his agency’s regulatory process and track record, CFPB Director Richard Cordray said that the mortgage rules scheduled to take effect next January will not be delayed despite a forthcoming “second round of proposed changes” and other “adjustments at the margins.”
One of the admittedly difficult parts of writing new rules is to anticipate the unexpected, Cordray said.
“Unforeseen consequences can loom large, and broader consultation through an open and accessible process helps us mitigate this concern,” Cordray said. “Finally, as to mistaken judgments, no foolproof system can be devised to prevent them, but again, an open and accessible process managed by our highly competent staff provides some assurance that we will hear and test conflicting viewpoints before reaching our conclusions – thereby subjecting our rules to the rigors of the proverbial ‘marketplace of ideas.’”
Cordray said that the CFPB has “a large team” working on the implementation of the mortgage rules.
“We pledge to work with the industry to resolve ambiguities, to discuss obstacles to implementation and to work through any serious, unintended consequences,” he added.
ABA and its member banks have on numerous occasions outlined their concerns about certain elements of the mortgage rules, and have often requested extensions of the compliance deadlines due to operational concerns that may affect access to credit.