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Within a few hours of being nominated as a representative director of the Consumer Finance Bureau, the Finance Secretary Scott Bessent has freezes all of the activities of the bureau, except for those approved or obliged by law. I did.
The freeze applies to the latest lists of the proposed final rules and litigation stations. This includes two final rules for the improvement of consumer mortgage closure costs and the tightening of the assessed clean energy (pace) improvement loan. We revise the truth in the real estate settlement procedure and the lending method, and support the borrower navigating the tolerant program.
The Bloomberg method broke the freeze news on Tuesday after receiving e -mail sent to CFPB employees. According to the Bloomberg Law, “Secretary Vessa has promised to properly manage the agency until he puts a new leadership as a substitute director.” “”[The freeze is] Promotes consistency with the government’s goals. “
Management of mortgage closure costs
CFPB was not far from planning to manage mortgage closure costs. Last year, the bureau issued a public investigation to identify the root cause of the rise in closure. Former CFPB director Rochito Chopura, expanded closing costs, have already saved appropriate down payments and are struggling to keep up with mortgage rates and keeping up with housing prices. Was stated.
Mortgages and title groups have pushed the CFPB proposal back, and the Mortgage Bank Association questioned the CFPB legal authorities to guide the commission for closing costs.
“The basic propulsion of the current barriers for home -owned and affordable prices is a low -housing inventory and pandemic -induced macro economic conditions. Increased closing costs are the result of these problems. It is not a major factor in affordable prices, “MBA stated in a letter issued to CFPB in August.
“MBA is incorrect to focus on the closing costs of mortgages of the bureau, and it was disclosed as a” junk fee “in press release, blog, circulation, advisory opinion, and public speech. We are concerned that the necessary and necessary mortgage -related fees are incorrectly characterized. 。 “
“I am afraid that the previous statement suggests that CFPB may have already reached a conclusion that was determined in advance regarding the validity of these RFIs and the effectiveness of these rates,” he said. Is added.
Reflecting the MBA, American Land Title Association stated that CFPB is wrong to characterize title insurance and settlement services as “junk charges”. The group stated that consumers had clearly disclosed the charges included in the closing costs and claimed that these rates were only part of the total cost of housing purchase.
“The title insurance and settlement services collide with the definition of the White House and the” junk fee “category and quote the lack of disclosure of charged fees,” Alta said in a statement. “CFPB’s unique research indicates that these disclosure has been working to educate consumers about closing costs since recently. CFPB report finds major information and initial disclosure and final disclosure. We praised the unique rules of improving the ability to compare the conditions and costs and comparing the conditions of the entire mortgage.
“The title industry not only issues insurance contracts, but also does important tasks to cure defects in the title chain, such as unpaid taxes, childcare expenses, and other pre -registration privileges, and to protect consumers. Not only fighting scams such as DEED fraud, “they added.
In his last post about X, a platform, which was previously known as Twitter, Chopra signaled that he would have charged the rules before. Former director said that the borrower had been refunded more than $ 120 million in 2024 as a result of a CFPB survey on mortgage fees.
Prevents the borrower from going down
Rules on mortgage costs have not passed public comments, but CFPB is the final stage of two rules regarding the underwriting of the property evaluated clean energy (pace) improvement loan and the real estate payment procedure (RESPA). It has reached. The truth of the lending method (TILA) supports the borrower navigating the tolerant program.
The pace rules based on the regulation Z need to evaluate the ability to repay the loan of the borrower and provide an disclosure to explain the outline of other funding options. With the pace loan, housing owners can upgrade high -energy houses, such as installing solar panels. Pace loans are usually funded due to bond issues approved by local governments, but are often provided to housing owners by housing lenders and partnered with housing improvement contractors to sell them to consumers. There is a possibility.
In many cases, the pace loan comes with a 20 -year repayment condition that is repaid through property tax. According to CFPB, pace loans have a high risk of increasing the property tax of housing owners $ 2,700 per year, and the housing owners are likely to make a mortgage default. Even if housing owners can catch up with mortgage payments, CFPB is not the owner of the property, but is linked to the property, so often encounter problems when refinancing and selling a house. I said.
The MBA, the National Consumer Law Center (NCLC), and the Housing Policy Council praised the rules Z, but was still worried about the pace lender who maintained the “super -prioritization priority.” Mortgage loan.
“”[The rule] Through the tax evaluation process, the fact that the pace loan is provided as “priority of super -prejudice” is not changed. This has damaged the borrower that may not be able to refinance or recover the investment in the housing market and sales. For the status of pace obligations priority, “the group stated in a joint statement in December. “We will continue to cooperate to deal with such issues, and there are things that may occur during the implementation of rules in the state with the Pace program.”
On the other hand, the convalescing rules based on the rules X tried to simplify and rationalize the borrower’s service rules that are seeking support. These rules have revised RESPA’s 2013 mortgage service rules. As a result, the mortgage servicer must evaluate the “all executable loss options” of the borrower who has completed a loss reduction application to avoid seizure. In the early days of COVID-19 Pandemic, CFPB issued an emergency rule so that the mechanic can provide an option to reduce loss without submitting a loss reduction application.
FORVEARANCE RULE has expanded the mounting obligation of mortgage service to the borrower, reveals the timeline of the Review Cycle of Loss Relaxing Cycle, and banned the advance of the subdivision and the additional charge and fines. The rules demanded that servicers are not proficient in English or loan provided oral and written translation services to borrowers sold in language other than English.
The Pace rules are scheduled to come into effect on March 1, 2026, and CFPB is expected to issue the final version of the Patience Rules earlier this year, and is scheduled to be executed at least 12 months later. However, both rules are currently on the backburner, along with other CFPB final rules for maintaining medical debt from consumer credit reports to $ 5.
Rocket mortgage loan, other servicers out of hooks -so far
In addition to the rules proposal, CFPB has filed some lawsuits against mortgage servicers for illegal kickbucks casuals and discrimination against borrowers under former director Rohit Chopra.
CFPB placed all offices in the majority of white districts in Boston and Chicago on January 17, avoiding marketing activities in the majority of blacks and Hispanic, so on January 17 to DRAPER & KRAMER MORTGAGE CORPORATION. Was filed a lawsuit. We have a low loan application and transmission from blacks and hiss breasts.
Last year, CFPB issued a looted reverse mortgage loan to the elderly housing owners, intentionally submitted incorrect mortgage data, and targeted Hispanic buyers through illegal land sales. We have filed some lawsuits for the servicer. However, the CFPB lawsuit on the rocket mortgage has gained the most traction in the media, and the bureau provides kickback in exchange for the referral, and requests agents and brokers to induce clients to the company’s products. The servicer blamed it broke RESPA regulations.
Rocket Mortgage violently denied CFPB’s claim and told Inman that it was “false and realistic distortion.”
“It is a lie that the house buyer paid more when working with the rocket house,” said Inman in December. “In addition, the concept that Rocket Homes was punished by real estate brokers or agents to compare the client and support them to choose the best lenders.”
“Before the change in the administration was reckless and shocking the public resources, the transparent strategy to strengthen his political agenda,” they added. “This thin litigation is the latest of the tide wave of legal measures by desperate chopra who is hungry for headlines.”
Inman contacted CFPB and rocket about the current situation of the lawsuit. Neither party has responded.
What is next?
CFPB does not provide additional information on freeze because it includes the suspension of public communication.
As suggested by the owner of X, as suggested, Polunsky Beitel Green’s senior associate Peter IDZIAK believes that the Bessent secretary does not try to eliminate the station. However, IDZIAK stated that BESSENT is likely to prioritize extending the compliance date of the non -bank registration rules.
Mortgage experts reported in January have already been closed in large non -bank agencies. However, the deadline for a small non -bank organization is April 14. This is the day when the MBA asked CFPB to push it back before the chopra firing.
“I hope that CFPB will promptly act on the MBA demands and postpone the compliance date based on the non -bank registration rules,” said IDZIAK that INMAN issued an email statement. “I believe that the station will act to withdraw the rules because it is a representative example of the cost and unnecessary regulations that the Trump administration is trying to reduce.”
He also hopes that Bessent will also suspend the rules of maintaining medical debt from consumer reports, despite the potential adverse effect on the mortgage application rate.
“Vessent acted [Tuesday] To pause the rules that prohibit medical debt in consumer reports, “he said. “This rule is facing the opposition between the Congress’s Credit Reporting Group and the Republican members, so if the parliament itself does not disclose it based on the parliamentary examination law, it is likely that CFPB will abolish the rules. “
“When issuing the rules, CFPB says that the withdrawal may have an adverse effect on the occurrence because the ban may be approved by 22,000 additional mortgages each year,” he said. Is added.
Please email Marian Mcpherson
