Consumer groups warn CFPB rollback of mortgage rules could expose borrowers

A coalition of consumer and housing advocacy organizations is urging the Consumer Financial Protection Bureau (CFPB) to preserve key mortgage borrower protections, warning that proposed changes to federal lending rules could leave consumers vulnerable to predatory practices and unaffordable loans. The National Consumer Law Center, National Housing Law Project, National Fair Housing Alliance, Americans for Financial Reform Education Fund and Consumer Federation of America submitted comments opposing changes affecting the Truth in Lending Act and Real Estate Settlement Procedures Act, which together underpin the TILA-RESPA Integrated Disclosure rules. The groups said the existing framework was developed after years of evidence that consumers were being harmed by the complexity of mortgage transactions and urged the CFPB to focus instead on enforcing the current rules. “Instead of weakening regulations, we urge the CFPB to enforce the existing TRID regulations,” said Steve Sharpe, senior attorney at the National Consumer Law Center. “Any changes must serve the ultimate goal of helping borrowers access safe and affordable credit.” A central concern is the potential impact on the rules ...