The Consumer Financial Protection Bureau will complete work on a rule aimed at ensuring borrowers have the ability to repay their mortgages early by next year, according to Raj Date, the former banker running the new agency.
“We plan to issue a final rule early next year in order to provide clarity to the market as quickly as we can, without sacrificing the quality of our analysis,” Date said today at a Washington conference sponsored by American Banker, a print and online publication covering the financial-services industry.
The rule, required under the Dodd-Frank Act, was issued by the Federal Reserve in April and has been taken over by the consumer bureau, which began work in July. The measure includes underwriting standards aimed at preventing abusive lending practices that lawmakers and regulators say led to record foreclosures in the wake of the 2008 credit crisis.
Date is a former executive with Capital One Financial Corp. (COF) and Deutsche Bank AG (DBK) who joined the consumer bureau in February as associate director for research, markets and regulation. He took over as special adviser to the Treasury secretary overseeing the agency on Aug. 1 after Harvard University law professor Elizabeth Warren stepped down.
Richard Cordray, the former Ohio attorney general serving as the consumer bureau’s enforcement chief, is awaiting Senate confirmation to become its first director.
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