NCRC Statement on CFPB Mortgage Servicing Rules

Washington, DC – Today, in reaction to the Consumer Financial Protection Bureau’s (CFPB) release of new mortgage servicing rules, NCRC President and CEO John Taylor made the following statement:

“The CFPB’s new mortgage servicing rules set bright lines for mortgage servicers and help to ensure that consumers will be treated fairly and with respect. In conjunction with the Qualified Mortage (QM) rule, these rules provide clarity and set parameters for fair and equal access to loans and the servicing of loans.”

“With the new rules CFPB has recently issued in place, the uncertainty which lenders have blamed for the market-wide constriction of credit is no longer a factor. We expect that the issuance of the QM rule and these new servicing rules should result in a large increase in safe and sound lending to creditworthy borrowers.“

“It is now time for the President and Congress to put more energy and resources into preventing foreclosures and keeping working families in their homes. Bright line standards alone will unfortunately not suffice for underwater homeowners who have been harmed by the irresponsible lending which led to the housing crisis. The President must also ensure that the GSEs, now a presumptive qualified mortgage securitizer, do not artificially constrict credit with higher credit score requirements and g-fees.”

About NCRC

The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America’s working families. To find out more, visit http://ncrc.org

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