The National Community Reinvestment Coalition represents the voices of consumers and community organizations that are trying to promote affordable housing and communities.
The group's president and CEO John Taylor believes the latest CFPB servicing rule should give lenders the certainty they need to kick start lending.
Here is his response to the new rule below.
"The CFPB’s new mortgage servicing rules set bright lines for mortgage servicers and help to ensure that consumers will be treated fairly and with respect. In conjunction with the Qualified Mortage (QM) rule, these rules provide clarity and set parameters for fair and equal access to loans and the servicing of loans."
"With the new rules CFPB has recently issued in place, the uncertainty which lenders have blamed for the market-wide constriction of credit is no longer a factor. We expect that the issuance of the QM rule and these new servicing rules should result in a large increase in safe and sound lending to creditworthy borrowers."
"It is now time for the President and Congress to put more energy and resources into preventing foreclosures and keeping working families in their homes. Bright line standards alone will unfortunately not suffice for underwater homeowners who have been harmed by the irresponsible lending which led to the housing crisis. The President must also ensure that the GSEs, now a presumptive qualified mortgage securitizer, do not artificially constrict credit with higher credit score requirements and g-fees."