CFPB is questioning whether to increase the data collected under the Home Mortgage Disclosure Act to better monitor trends and abuses in the market. This would possibly requiring lenders to explain why they rejected a loan and whether they thought it was a so-called “qualifying mortgage.” In addition, financial institutions would have disclose an applicant’s debt-to-income ration, the interest rate, the total origination charges, and the total discount points of the loan.
Self-employed individuals and small-business owners may not meet the requirements of new mortgage rules that went into effect Friday and could face hurdles obtaining new home loans.
According to Richard Cordray,The Consumer Financial Protection Bureau’s agency director, the CFPB could consider expanding exemptions for small lenders from its qualified mortgage rule after it goes into effect on Friday. Mr. Cordray asked for input from community bankers, credit unions, and other lenders to let the CFPB know if they “got the line right.”
