twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/

Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.



Cordray Talks QM at House Hearing

Semi-annual CFPB report discussed in contentious House hearing

Sept. 12, 2013

By Mortgage Daily staff

The U.S regulator of consumer financial products sparred with GOP legislators and highlighted how the Qualified Mortgage designation isn't limited to borrowers with low debt-to-income ratios. Concern was raised about the QM impact on community banks.

Consumer Financial Protection Bureau Director Richard Cordray delivered the regulator's semi-annual report Thursday to the House Committee on Financial Services.

Committee chairman Rep. Jeb Hensarling, a Republican from Texas, began his questioning by highlighting how the director's staff members are "uniquely unresponsive to our inquiries."

Hensarling referenced a July 9 House hearing where CFPB Deputy Director Steven Antonakes responded to many questions about data collection by promising accurate numbers later. Hensarling then proceeded to play an edited video that mocked the deputy's repeated responses promising precise numbers later.

When pressed by the chairman about when the CFPB will be providing the responses, Cordray responded, "any day now."

C-Span photo of Richard Cordray


Hensarling highlighted concern from community financial institutions about the 43 percent DTI ratio QM limitation. He cited an example of someone who has a 44 percent DTI, 20 percent down and a 740 FICO score.

"They will be denied credit under this standard versus somebody who has a 43 percent DTI , has a 440 FICO and puts zero percent down," Hensarling said. "So on the one hand you could be restricting credit to deserving credit-worthy borrowers, and on the other hand -- although I know you are not a safety and soundness agency -- you could be helping put the government imprimatur on exactly the type of mortgages that helped bring about the crisis in the first place."

Cordray responded by first noting that Hensarling was inaccurate in his statement that each loan must have a maximum 43 percent DTI. He explained that there are many channels outside the QM.

"That is one of the categories, bright line categories, that get you to a qualified mortgage," the director stated. "There is a separate category, also a bright line category, if the loan is eligible for purchase by any of the GSEs in conservatorship, Fannie Mae or Freddie Mac, that's a very significant band of things that could be above a 43 DTI."

Cordray described a third category where creditors with less than $2 billion in assets can count portfolio loans as QMs even if they don't have a 43 percent DTI.

Rep. Maxine Waters (D-CA) came to the defense of Cordray and praised his appointment as CFPB director. She also requested that Cordray do more to help community banks with QM.

next story

back to current headlines


Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.

www.mortgagebranchmanagerjobs.com
Mortgage Compliance News | Mortgage Compliance Newsletter | Mortgage Regulations
News about complying with mortgage laws, rules and regulations.


Bank news


Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders