Mitt Romney’s comments attributing the difficulty of getting a mortgage to Dodd-Frank QRM rules was really way off base. The rule is on track to be completed by the Consumer Financial Protection Bureau on the timeline set out in Dodd-Frank, by 2013. As it’s not in place now, it places no penalty on lenders to hand out loans below the Qualified Residential Mortgage standards. And there isn’t a look-back function in the rules. If anything, you’d think lending would go FASTER to get negative amortization or adjustable-rate loans in under the wire. To the extent that there’s any delay, it’s because banks and mortgage lenders are trying to expand the rule to get themselves legal immunity on the loans they write.
|By: David Dayen Saturday October 6, 2012 7:00 pm|
|By: David Dayen Wednesday July 18, 2012 1:10 pm|
A group of House Republicans and Democrats, 108 strong, have expressed in a letter that the new rules on “qualified residential mortgages,” among the first on the industry for CFPB, should include a “safe harbor” provision that would shield mortgage brokers and originators from borrower lawsuits. If expressed broadly, this would give borrowers no legal recourse on new loans to contest the terms of their mortgages.