Banks believe they can live with mortgage-underwriting rule

, The National Law Journal

   |2 Comments

The Consumer Financial Protection Bureau's new "ability-to-repay" regulations contain a key legal protection for mortgage lenders, leaving their attorneys cautiously optimistic that the process will work.

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What's being said

  • MIke Moore

    These strike me as "duh" regulations. What is most amazing about them is that they are even needed. One would have thought common sense and prudence would have dictated that banks, other lenders, or purchasers or mortgage backs would have insisted on the borrowers being creditworthy. The financial crisis of 2008 proved otherwise--the lure of big commissions, the ability to "pass the buck" in a game of musical chairs, feckless federal regulators and wholly compromised ratings agency were part of a witches' brew that showed regulations of these kind are in fact necessary. The crisis also showed that the self-deception fed by self-interest among the top management of many Wall Street firms, not to mentione AIG, FNMA, and Freddie was almost beyond belief

  • TotallyDaft

    Phew, for a minute there I thought that the underwriting rules would have to be re-written. So happy that the banks are happy.

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