“In general, we’re looking at all the old rules, even rules from ten years ago, to see how they perform. We’ve already evaluated some of them… We’re not reviewing the LO comparison right away. I’m of the opinion that Be open minded.
Chopra added that he hopes industry can help determine where the CFPB wants to strengthen oversight and which rules need to be updated.
“My sense is that we could use help identifying specific places where people are crossing the line. You need us to be clear that this is not allowed and, where appropriate, to be able to take some enforcement action so that things are crystal clear. Mortgage Bankers Association Bob Broxmit, President and Chief Executive Officer.
“But I do often hear about creative ways to get around the law. We’re looking at this and we’re happy to work with you to figure out the best way to do it.
Supreme Court ruling
In her discussion with Broeksmit, Chopra also discussed the bureau’s recent 7-2 Supreme Court victory that ensured the agency’s survival, as well as the so-called mortgage “junk fees” the CFPB has been targeting.
Chopra told Broxmit that the agency has a “whole set of ideas” in place for what would happen if the ruling went against them, as well as various rules the agency has developed over the decade, such as the service rule, LO compensation and qualified mortgage rules.
“I appreciate that the mortgage industry is a mature player in the financial services industry as a whole, and we don’t want to create ongoing chaos,” Chopra told Broxmit.
The agency’s court victory means it will continue to pursue “crooks” and other lawbreakers. “I don’t think it’s going to change the way we operate,” he said.
Relations with credit bureaus
Broxmit took issue with what he called an “overly broad” interpretation of garbage fees imposed on consumers. The information is disclosed in advance on the form, he said, noting that other federal agencies also require the information.
“We’re skeptical of your take on this. …These credit report and credit score fees are not subject to normal competitive forces. They are simply imposed on you and the borrower. Junk fees refer not only to what’s in them, but also to what’s in them. Content that has meaningful competitive implications, or content that is used for content that no one really wants.
“So, now, you can expose some of these piracy, but they shouldn’t be piracy. There are different bottlenecks in the system that are driving up costs. There are a lot of other things going on when a borrower is about to close that they can’t Evaluate what is fair and what is unfair. I think if anything, mortgage lenders are victims of junk fee practices.
Chopra then pointed to the trade group’s financial ties to the credit reporting industry.
“I get it. I know it’s uncomfortable: FICO sponsors this [event]. You all work a lot with credit reporting companies,” he said. “But I think you have to be willing to stand up to some of these fees and say they’re fundamentally unfair. Even if we make them public, they’re ridiculously high.
