U.S. Regulators Moving Cautiously on Mortgage Reforms

U.S. bank regulators are carefully crafting various rules to put a stop to reckless underwriting and other mortgage market abuses, claiming they are cognizant of arguments from an alliance of both banks and consumer groups that excessively strict regulations could hinder credit availability. Lenders and consumer groups said the Consumer Financial Protection Bureau (CFPB) struck a balance with its first major mortgage regulations, including a mandate that lenders confirm that borrowers could repay loans; since then, bank lobbyists say CFPB officials remain sensitive to their concerns about rule compliance, and in some cases the bureau has responded to banks' comments by revisiting final rules and changing technical aspects. Lobbyists now are worried that the bureau's modifications could complicate compliance with all of the new rules by the January 2014 effective deadline.

From "U.S. Regulators Moving Cautiously on Mortgage Reforms"
Reuters (07/29/13) Stephenson, Emily