Cordray Doesn’t Expect Wave of Litigation Over CFPB’s QM RuleCarter Dougherty and Elizabeth Dexheimer
U.S. Consumer Financial Protection Bureau Director Richard Cordray said he doesn’t anticipate an outburst of litigation after his agency’s qualified mortgage rule takes effect next year.
Regulators understand that banks will need time for implementation of the rule, which will require that lenders take certain steps to confirm a borrower’s ability to repay, Cordray said in a speech today at an American Bankers Association conference in New Orleans.
“Let me also assure you that our oversight of the new mortgage rules in the early months will be sensitive to the progress made by institutions that have been squarely focused on making good-faith efforts to come into substantial compliance on time –- a point that we have also been discussing with our fellow regulators,” he said.
The consumer bureau will have no data initially and will need to wait a few months after the rule takes effect in January to judge its impact, Cordray said.