CFPB Prioritizes Resilient Mortgage Rules to Safeguard Consumers and Market Stability

 The The Consumer Financial Protection Bureau (CFPB) has been reviewing its rules and guidance documents since 2021 and has identified complex and industry-centric policies in federal mortgage rules. One significant issue is the reliance on the average prime offer rate (APOR) for compliance obligations, which is calculated and published by the CFPB. However, the data used to calculate APOR has faced challenges due to the reliance on a single entity, such as Freddie Mac, which recently changed its data collection methodology. The CFPB has addressed this by selecting a new data provider and implementing a new methodology for calculating APOR. This situation highlights the need for more resilient and durable rules that do not rely on single entities or complex benchmarks. The CFPB acknowledges the need for long-term solutions to ensure system resilience, eliminate unnecessary complexity, and welcomes feedback on rule-making approaches.

It appears that the CFPB's recognition of the need for more resilient and durable mortgage rules is a positive step towards ensuring a fair and stable market. By addressing the challenges with the APOR calculation and seeking long-term solutions, the CFPB aims to enhance the effectiveness of consumer protection measures and reduce potential vulnerabilities. The commitment to eliminating unnecessary complexity and welcoming feedback indicates a proactive approach to improving the rulemaking process. Overall, these actions demonstrate a willingness to adapt and make necessary changes to strengthen the mortgage market and better serve consumers.

Source:https://www.consumerfinance.gov/about-us/blog/building-resilience-and-durability-into-mortgage-rules/?utm_source=newsletter&utm_medium=email&utm_campaign=general_updates&utm_term=5.19.23

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