Trade groups believe the proposed rule will harm consumers by tightening credit standards. An association representing debt collection agencies warned that the proposal could lead borrowers to take on additional debt they can’t afford.
Sellers repeatedly using contract-for-deed financing must assess a borrower’s ability to repay a loan and provide disclosures, the CFPB said in a new advisory opinion.
Any regulatory action resulting from the CFPB’s recent request for information must be grounded in the bureau’s statutory authority, the Mortgage Bankers Association said.
Consumer ire toward financial services and products doesn’t seem to be abating, with complaints to the CFPB hitting a record high in the second quarter of 2024. (Includes two data tables.)
Mortgage industry trade groups want the bureau to explore the repercussions on markets and consumers of any new rule or regulation concerning mortgage closing costs.
While companies will inevitably have to reduce costs, industry analysts stress that it’s important that compliance policies and system remain updated and in-place.