|By Marketwired .||
|January 7, 2014 05:08 PM EST||
WASHINGTON, DC -- (Marketwired) -- 01/07/14 -- New mortgage lending rules to protect consumers from risky loan products will take effect this Friday, and Realtors® will be on the front lines as homebuyers access safer mortgages that meet strong underwriting standards, said Consumer Financial Protection Bureau Director Richard Cordray at an event held today by the National Association of Realtors®.
Cordray delivered prepared remarks about the historic consumer protections his agency will implement at the end of the week. "The Ability-to-Repay rule is straightforward. It puts behind us once and for all the kind of irresponsible lending that disrupted the housing market and so badly damaged our economy, and it provides strong new consumer protections while preserving needed access to mortgage credit," he said of the rule and its Qualified Mortgage standard.
NAR President-elect Chris Polychron, a Realtor® from Hot Springs, Ark., moderated the briefing and lauded the CFPB for creating a safer, more transparent lending environment with loans that are required to meet stringent underwriting standards. "These regulations will go a long way to protecting consumers from receiving loans that may be inappropriate for them and gives them additional legal protections. NAR supports these changes and has provided input throughout the rulemaking process," he said.
Cordray acknowledged concerns that the new rules could further constrain credit in an already tight lending environment. "Importantly, our rule also takes careful account of these access-to-credit issues," he said. "Those lenders that have long upheld strong underwriting standards have little to fear from the Ability-to-Repay rule. Qualified mortgages cover the vast majority of loans made in today's market, but they are by no means all of the mortgage market."
Cordray explained the basic criteria for Qualified Mortgages, which cannot be made to a borrower with a debt-to-income ratio greater than 43 percent. "They also cannot have certain risky features, such as paying interest only or even negatively amortizing so that each month the consumer owes more than they did before and loans must have relatively reasonable points and fees," he said.
The rule includes a 3 percent cap on points and fees, which NAR believes unfairly discriminates against affiliated lenders who have to count many more items toward fees and points than large retail financial institution, such as title insurance charges and escrow for homeowner's insurance.
"The problem is that under this rule, affiliated and non-affiliated firms are treated differently," said Polychron. "It's NAR's view that this would be a disadvantage to many real estate affiliated lenders and reduce the choices available to consumers of where they can get a mortgage, and because the unaffiliated lender must still use a title company, the consumer pays the same amount either way."
Cordray said that Congress drew a line on points and fees, but that going forward, regulators, consumers and Realtors® can monitor the market and evaluate the cap's impact on access to credit.
"It means a great deal to our new Consumer Bureau to know that NAR has members with boots on the ground in communities both small and large all across the U.S. We urge [Realtors®] to help us spread the word about how consumers can make the most of this new agency," said Cordray.
Following Cordray's remarks, leading housing policy experts participated in a panel discussion about the new Ability-to-Repay and Qualified Mortgage rule. The panelists offered divergent views about the potential impact the rule might have on the overall housing market, and suggested that the lending industry is prepared for implementation.
Jeff Kibbey, primary legal counsel for Century Mortgage Company, asserted that the new rule will restrict lending by at least 10 percent, and higher than that in some regions, which will create some difficulties in our economic recovery as a result of the QM rule.
Economist Ann Schnare, principal at AB Schnare, LLP, emphasized that some of the guidance in the rule to help lenders calculate income, debt, and assets, if left unedited, could potentially create an ossified underwriting system that may be inappropriate for the next generation of homebuyers. "We need to make sure the rules aren't creating unintentional barriers to access," she said.
Lawrence Yun, NAR's chief economist, explained the future of homeownership depends on greater access to credit. "Over the past eight years, homeownership in the U.S. has decreased while many in the growing population have turned to renting instead of buying a home. We need to ensure that good, creditworthy renters can someday have the appropriate access to credit so they can build equity through homeownership."
Barry Zigas, the director of housing policy for the Consumer Federation of America, applauded the CFPB for listening to stakeholders across the country to create a meaningful rule to protect consumers. "Consumers are finally going to be in an environment where their ability to repay a loan will be the fundamental determining factor about whether they'll get a loan or not. This is a terrific week for Americans," he said.
NAR will continue to monitor the rule's impact on consumers, including the important new protections, and will work closely with CFPB and others to ensure that consumers have access to affordable mortgage credit.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the "News, Blogs and Video" tab on the website.
For further information contact:
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU’s GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes.
Oct. 25, 2016 10:15 AM EDT Reads: 1,710
Apache Hadoop is a key technology for gaining business insights from your Big Data, but the penetration into enterprises is shockingly low. In fact, Apache Hadoop and Big Data proponents recognize that this technology has not yet achieved its game-changing business potential. In his session at 19th Cloud Expo, John Mertic, director of program management for ODPi at The Linux Foundation, will explain why this is, how we can work together as an open data community to increase adoption, and the i...
Oct. 25, 2016 10:15 AM EDT Reads: 1,931
By now most people have either created their configuration management solution or are just embarking on this journey. In his session at @DevOpsSummit at 19th Cloud Expo, Marco Ceppi, a DevOps Engineer working at Canonical, will discuss how to take configuration management to the next level with modelling and orchestration. He will also discuss how and why people are moving from a machine-centric view to a service/application-oriented view of deployments, and how you can leverage the knowledge a...
Oct. 25, 2016 10:00 AM EDT Reads: 1,899
operations aren’t merging to become one discipline. Nor is operations simply going away. Rather, DevOps is leading software development and operations – together with other practices such as security – to collaborate and coexist with less overhead and conflict than in the past. In his session at @DevOpsSummit at 19th Cloud Expo, Gordon Haff, Red Hat Technology Evangelist, will discuss what modern operational practices look like in a world in which applications are more loosely coupled, are deve...
Oct. 25, 2016 09:45 AM EDT Reads: 1,788
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Oct. 25, 2016 09:45 AM EDT Reads: 1,367
In his session at 19th Cloud Expo, Nick Son, Vice President of Cyber Risk & Public Sector at Coalfire, will discuss the latest information on the FedRAMP Program. Topics will cover: FedRAMP Readiness Assessment Report (RAR). This new process is designed to streamline and accelerate the FedRAMP process from the traditional timeline by initially focusing on technical capability instead of documentation preparedness. FedRAMP for High-impact level systems. Early in 2016 FedRAMP officially publishe...
Oct. 25, 2016 09:42 AM EDT Reads: 119
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Oct. 25, 2016 09:30 AM EDT Reads: 2,587
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 25, 2016 09:15 AM EDT Reads: 1,064
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
Oct. 25, 2016 09:00 AM EDT Reads: 1,946
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
Oct. 25, 2016 08:45 AM EDT Reads: 16,497
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, will provide economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session will also include a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
Oct. 25, 2016 08:45 AM EDT Reads: 1,996
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
Oct. 25, 2016 08:30 AM EDT Reads: 894
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
Oct. 25, 2016 08:00 AM EDT Reads: 5,739
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Oct. 25, 2016 07:45 AM EDT Reads: 4,910
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 25, 2016 07:45 AM EDT Reads: 1,400