On August 17, the CFPB proposed rules to bring greater accountability to the mortgage loan origination market. The proposal would: (i) require lenders to make a no-point, no-fee loan option available; (ii) require an interest-rate reduction when consumers elect to pay upfront points or fees; (iii) set qualification and screening standards; (iv) prohibit payment of steering incentives to mortgage loan originators; and (v) place restrictions on arbitration clauses and financing of credit insurance. Comments must be received by October 16. Final rules will be issued in January 2013. CFPB Release.
mortgage market
Geithner Testimony on Housing Finance Market Reform
On March 15, Treasury Secretary Geithner testified before the Senate Committee on Banking, Housing and Urban Affairs to discuss the Administration’s plan for reforming the housing finance market, which entails: (i) reducing the government’s role in the mortgage market and winding down Fannie Mae and Freddie Mac in a responsible manner; (ii) addressing fundamental flaws in the mortgage market; (iii) improving access to a wider range of affordable housing options; and (iv) setting out ways to structure government support in the housing finance market in the future. Geithner Testimony.