CFPB director Richard Cordray has ruled out any possibility that lenders will be given more time to implement new regulations
CFPB director Richard Cordray has taken off the table any possibility that lenders will be given more time to implement new regulations.
In an interview with Politico, Cordray said the CFPB would not delay implementation of new qualified mortgage rules, despite requests from lenders. Cordray argued that the industry has had time to adjust to the "broad outlines" of the regulations.
"Frankly the reason is the changes in the mortgage market, certainly the broad outlines of those, have been roughly apparent going back to the passage of Dodd-Frank," Cordray told Politico.
Cordray said delaying implementation of the rule would delay its benefit to borrowers.
"We feel if industry can better implement these rules and be in a position by January to do so, which the vast majority of them tell us they are, it’s better for consumers because if rules aren’t implemented, then consumers don’t benefit."
Cordray also commented to Politico on the controversial move by former CFPB deputy Raj Date to start a company specializing in non-QM loans. Cordray suggested the move didn't negate Date's "adherence to mission".
"We made it a point here at the bureau to hire people from a broad set of backgrounds. ... Those people from time to time will move on and go do other interesting, important, valuable things, and what they do when they leave here is their choice. ... Do we continue to have a deep adherence to mission, which has been our advantage? That’s what brings people here and I don’t think people lose that just when they step out the door."
