FILE PHOTO: Tenants and housing rights activists protest for a halting of rent payments and mortgage debt as sheriff's deputies block the entrance to the courthouse, during the coronavirus disease outbreak, in Los Angeles, California, U.S., October 1, 2020. REUTERS/Lucy Nicholson
The changes from the Consumer Financial Protection Bureau are part of a broader push by President Trump’s administration to boost affordable mortgage products by reducing lenders’ liability and compliance risk, although some consumer advocates say the changes could hurt vulnerable borrowers. The agency has also created a new “seasoned” qualified mortgage, which would give lenders certain liability protections after they have held the loans in a portfolio for at least three years. Under the new category proposed in August, a first-lien, fixed-rate “seasoned” loan can become a general qualified mortgage after 36 months of timely borrower payments.
While mortgage-lending groups have praised the Bureau’s efforts to boost more innovative products, some consumer advocates have said the changes strip away important guard-rails and make it easier for banks to target vulnerable borrowers.
Who didn't see this coming