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Different Views on Consumer Financial Protection Bureau's New Mortgage Regulation

National Association of Realtors® applauds the new regulations. The Heritage Foundation is less charitable.

By Toby Tobin
Palm Coast, FL – January 14, 2013 – The Consumer Financial Protection Bureau has issued more than 800 pages of new mortgage regulations as called for in the Dodd-Frank Bill. A short position statement issued by the National Association of Realtors® generally applauds the CFPB's efforts. They state:
“The National Association of Realtors® applauds the Consumer Financial Protection Bureau for creating a broadly defined Qualified Mortgage rule that establishes strong consumer protections while ensuring continued access to safe, affordable mortgage credit.
“NAR forged a coalition of partners that urged regulators to honor Congressional intent by crafting a broad QM and we are pleased that the rule encompasses the vast majority of the safe, high quality lending being done today. We will continue to work closely with the CFPB to ensure that the cap on fees doesn’t restrict consumers’ mortgage options, but believe today’s QM rule is a positive step to bringing certainty to the housing finance system.
“Realtors® urge regulators to mirror the forthcoming Qualified Residential Mortgage rule after the QM rule to ensure affordable credit remains available to qualified borrowers.”
However, the National Heritage Foundation takes a different view:
"Irresponsible lending did indeed play an important role in the virtual collapse of the housing market. But a complex array of other factors—including deeply flawed government policies—also contributed. The regulations required by Congress and crafted by the CFPB fail to address more fundamental aspects of the problem and instead introduce potential constraints on a recovery of the housing sector."
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Don "Toby" Tobin is a licensed real estate professional affiliated with Grand Living Realty. Toby is a member of the Flagler County Association of Realtors®, the Florida Association of Realtors, Enterprise Flagler, Flagler Home Builders Association, and the National Association of Realtors.

GoToby.com proivdes real estate news, commentary, and analysis for Palm Coast and Flagler Country Florida, as well as Realtor® referrals and consultation to buyers, sellers, and developers.