News from our friend and Real Estate Educator, Duane Gomer:
A bill has been introduced to the House of Representatives to make some major changes to the CFPB which was formed by the Dodd-Frank Bill in 2010. The Republicans have always expressed dissatisfaction with this Bureau that was basically formulated by Elizabeth Warren before she became a Senator.
Some of the changes:
#1- The Act would change the name to the “Consumer Financial Opportunity Commission” (CFOC.)
#2- The purpose would be Consumer Protections and the Creation of Competitive Markets.
#3- There would be a five membership commission instead of a one person Director.
#4- There would be oversight by Congress.
#5- No more risk regulation of non-banks by the Fed.
#6- Revise Qualified Mortgage and Ability to Repay regulations to allow higher DTI and LTV on loans eligible under safe harbors.
#7- Change Basel III rules on capital thresholds and repeal the Volcker rule concerning Bank Ownership of hedge funds, private equity funds, etc.
Any questions about these topics, talk to your friendly State-Licensed Mortgage Loan Originator. Most of the discussion is above my pay-grade.
Change of the CFPB and reestablishment of the Glass/Stegall Act will depend on our upcoming elections as you all know.
For more information check this link: http://files.consumerfinance.gov/f/201503_cfpb_your-home-loan-toolkit-web.pdf
