One in Five Loans to be Disqualified by CFPB?
The Consumer Financial Protection Bureau – CFPB.
Waste of money? Possibly.
Keeping busy? Definitely.
For instance, they’ve written a whole guide book for the “Qualified Mortgage” that’s supposed to keep folks like you and me from being taken advantage of. It’s meant to make sure the banks play by fair rules and stick to safe lending practices.
Some of the biggest things they want prevent are loans with high fee levels (more than 3%) and APRs.
If you look at what they’re targeting and then take a quick look at the loans available on the market today, you’ll see that almost one fifth of today’s loans will be disqualified next year.
So what’s going to mean for the typical homeowner? Banks are cashing in now on tough lending practices and are hoping they can get a bunch in before they’re shut down.
Is this really the kind of economy we want to see? And is the CFPB going to show up like the gun-slinging sheriff and make it all better? Hard to believe.
But I’ll give them some time to prove themselves. If you run into any of their rules impacting your loans please leave your story here.