Business administration advises ways to enhance the refi
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When the Consumer Financial Protection Bureau (CFPB) asked the Mortgage Bankers Association (MBA) for comment, the MBA wrote a letter in response.
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a request for information (RFI) on how to make refinancing and mortgage forbearance better for consumers beyond the temporary pandemic-era initiatives.
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The CFPB released a request for information (RFI) at the end of September, in which it asked for feedback on how to make it easier for borrowers,
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especially those with lower loan balances, to refinance their mortgages.
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and measures to mitigate their risk of defaulting on their mortgage payments.
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Pete Mills, MBA's senior v.p. for residential policy and strategic industry engagement, wrote a letter on behalf of the organisation and its members.
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The RFI's overarching purpose is to "ensure that refinancing possibilities are generally available and regulatory or other restrictions do not excessively limit access to cheap and sustainable mortgages."
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The MBA has voiced doubts about these product concepts, saying that while "streamlined refinances may be a solution worth exploring," automatic refinances "present many difficult uncertainties and challenges that would be difficult to overcome."
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Policy changes that "enable favourable subordinate mortgages for consumers desiring reduced loan sums" were also proposed by the MBA as a means of boosting refinancing.
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It also recommended that the CFPB explore revising the QM points and fees cure provisions and altering the QM small loan exemption levels.