Consumer Financial Protection Bureau director Richard Cordray continues to reassure lenders that they should continue to make traditional well-underwritten loans, an article in National Mortgage News reported. 

The article explained that many lenders are scared they will be exposed to severe litigation risk if their loans do not meet the ability-to-repay standards. 

“Nothing about their traditional lending model has changed, and they should continue to offer such mortgages to borrowers whom they evaluate as posing reasonable credit risk—whether or not they meet the criteria to be classified as qualified mortgages,” Cordray said Tuesday.