Consumer Financial Protection Bureau Director Richard Cordray appeared before the Senate Banking Committee yesterday and said during the question-and-answer period that the CFPB intends to revisit the income-verification standards under the Ability-to-Repay Rule. Cordray is “increasingly aware of and concerned about” the possibility that self-employed, temporary and seasonal workers may see limited mortgage credit due to documentation requirements, he said.
“We need to look again at our mortgage rules in light of that,” he added. “It's not an easy thing to figure out how to handle, but it's something we need to go back and think more about.”
The CFPB and other regulators would also be “diagnostic and corrective” in the early months after the TILA-RESPA integrated disclosures for mortgages take effect, Cordray said. Lenders are “just going to be trying to get it right,” he said. “And so for the first period, which may last many months, the other agencies and ourselves as we work on this, if we see errors, we will point out what they are and how they should be corrected. We will not be looking to be punitive to people.”
Cordray added that the credit card market is “considerably better” than 10 years ago, noting improvements in customer service, fees charged and add-on products.