Two mortgage industry trade groups are urging the Consumer Financial Protection Bureau to focus its unique powers on streamlining regulations that would improve residential disclosures to consumers.
Under the Dodd-Frank Act, the CFPB can update, modify or even eliminate provisions in existing regulations as it implements new requirements of the 2010 financial services reform law.
As reported by NMN, the CFPB is already engaged in merging Real Estate Settlement Procedures Act, and Truth in Lending Act mortgage disclosures.
But the Consumer Mortgage Coalition – which represents several megabanks -- and the Mortgage Bankers Association are now urging the bureau to tackle the “daunting array” of federal and state mortgage disclosures.
“At this point, the addition of any new disclosures without meaningful reduction in the current disclosures and simplification of regulatory requirements will only work to undermine consumer understanding,” the two trade groups say in a new joint comment letter.
MBA and CMC also note that the bureau is forming a consumer advisory council that could be “utilized” to work on streamlining mortgage disclosures and regulations.
In addition, CFPB could form a council that includes lenders of all sizes while bringing state regulators into the process.
“We have long supported uniform national standards as the best and most economical means of protecting consumers and strongly believe a true streamlining process should work to achieve this objective,” the March 5 letter says.
