CFPB to hold two mortgage field hearings in January

Richard Cordray

Richard Cordray

The CFPB announced recently that it will hold two field hearings in January regarding mortgage policy.

The first hearing is slated for Jan. 10 and will be held in Baltimore, and the second hearing is scheduled for Jan. 17 in Atlanta. Richard Cordray, the director of the CFPB, is expected to present remarks at both hearings. Consumer groups, members of the public and industry participants are also scheduled to testify.

Both hearings are scheduled to be held just days before the CFPB’s Jan. 21 deadline to finalize mortgage regulations mandated by the 2010 Dodd-Frank Act. As a result, the rules could be the focus of the hearings.

The CFPB used an October field hearing on debt collection practices to announce the agency’s release of the final debt collection larger participant rule.

Other topics that are expected to be addressed include servicing requirements, loan originator compensation, new provisions for high-cost loans, escrow requirements for higher-priced mortgages, the “qualified mortgage” standard under Dodd-Frank’s ability-to-pay rule and appraisal-related requirements.

A number of industry groups have expressed concern regarding the QM rule, which is designed to help bolster the housing market, increase consumer access to credit, and reduce the cost of credit by making it harder for borrowers to sue lenders in the case of foreclosure, according to DealBook.

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