WASHINGTON (6/14/12)--The Consumer Financial Protection Bureau (CFPB) recently delayed the release of its ability-to-repay mortgage rule until later this year, and the Credit Union National Association (CUNA), the U.S. Chamber of Commerce, and other partners have suggested the agency use the extra time to consider how the mortgage rule could impact small businesses.
Under the still developing ability-to-repay rule, mortgage originators would be required to consider a homebuyers ability to repay their loan before a loan could be offered. The ability-to-repay rule was scheduled to be released as a final version in July, alongside a number of other CFPB mortgage disclosure and rule changes, but the agency delayed its release after new mortgage information came to light. The CFPB has added time to its process to consider new comments from the financial services industry, and CUNA has released a comment call. (See June 8 News Now story: New ability-to-pay comment process may be burdensome: CUNA)
In a joint letter to CFPB Director Richard Cordray, CUNA and several finance- and business-oriented partners suggested the CFPB conduct a Small Business Advocacy Review (SBAR) panel and publish the recommendations of the SBAR panel in conjunction with issuing the final rule. The letter noted that the agency is required to conduct SBAR panels when issuing rules that will significantly impact small businesses. A thorough examination of how the rule would impact small businesses, combined with recommendations gained from the SBAR panel, will help build consensus that will improve the efficacy of the final product, the letter said.
The letter was also signed by the American Bankers Association, the American Financial Services Association, the Community Mortgage Banking Project, the Community Mortgage Lenders of America, the Independent Community Bankers of America, the Mortgage Bankers Association, the National Association of Federal Credit Unions, the National Association of Mortgage Brokers, the National Association of Realtors, the National Federation of Independent Business, the Real Estate Services Providers Council, Inc., and the Small Business & Entrepreneurship Council.