California Real Estate Fraud Report

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25
Jul

Consumer Financial Protection Bureau Gets New Director – Moves Aggressively to Protect Consumers

Only two years old now, the Consumer Financial Protection Bureau (CFPB)  is already very active in bank regulating. With Richard Cordray being confirmed on July 16 as its director, many expect CFPB to become more aggressive on behalf of consumers by keeping an eagle-eye on the practices of banks and mortgage-related businesses.

High on the CFPB’s list is to simplify the current mind-boggling mortgage disclosures home borrowers must sign and to plow through and implement more provisions in the Dodd-Frank Act.

According to Alan Kaplinsky, chief of the consumer financial services group at Ballard Spahr, “There’s a lot going on with the CFPB’s enforcement but about 95% of it has been behind the scenes. “Now with Cordray’s position being secure, I expect we will see a lot more enforcement activity.”

Long overdue is the Qualified Mortgage rule (QM) that shockingly requires that lenders actually analyze a borrower’s ability to pay their mortgages. When QM goes into effect, the compliant lenders will get safe harbor protection in exchange for meeting certain benchmark standards, including a maximum debt-to-income (DTI) ratio of 43% or less.

Regarding simplification of mortgage disclosures, real estate agents and their brokers should take particular note that the CFPB intends to consolidate redundancy between the Truth in Lending Act and the Real Estate Settlement Procedures (RESPA).

Read the full article in National Mortgage News.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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