What the CFPB Did to Real Estate Law

These days, it’s all about loan origination. Where did it come from, is it reliable, can we trust it? When it comes to money that’s being loaned, what do you expect? It’s all about accountability. In the forefront of that accountability is a little bureau by the name of the Consumer Financial Protection Bureau (CFPB), a bureau with the sole purpose of figuring out which mortgages are qualified and which aren’t, and also, why they are and aren’t.

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These days, it’s all about loan origination. Where did it come from, is it reliable, can we trust it? When it
comes to money that’s being loaned, what do you expect? It’s all about accountability. In the forefront of
that accountability is a little bureau by the name of the Consumer Financial Protection Bureau (CFPB), a
bureau with the sole purpose of figuring out which mortgages are qualified and which aren’t, and also, why
they are and aren’t.
Heavy responsibility, I would say. Rightly so, though, as before any of these amendments brought out by
the CFPB, qualified mortgages were largely reliant on safe harbors or presumption of compliance.
Reputation was key back then. Generally speaking, points and fees had to be under 3% of the actual loan
amount for it to be satisfactory under those prior guidelines. That’s not the case anymore given these new
amendments with a kind of “good faith” standard for qualifying a mortgage, even when a mortgage exceeds
the points and fees cap. That’s actually the big difference right there.
There are other exemptions as well, specifically for nonprofit lenders where mortgage loans for low- or
moderate-income borrowers can be now allowed, however only if lenders in this case make 200 or less of
those dwelling-secured loans per year. Stipulations are clear. The CFPB even redefined the idea of a “small
servicer” so that there are no points of confusion.
Times are changing, but for the better, it seems. The goal is to continually bolster the real estate industry
through constant legislation of real estate law. The result? A healthier economy!

What the CFPB Did to Real Estate Law


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