Director of the Consumer Financial Protection Bureau, Richard Cordray, spoke to the Consumer Bankers Association on March 9th and described mortgage credit as being too tight. In the same address, Cordray also described current concerns that CFPB’s “qualified mortgage” rule is too onerous as being unfounded.
He cites the ongoing dialogue with the Consumer Bankers Association over the last four years as helping to improve the work that the CFPB has been doing. He also highlighted the development and necessity of customer feedback in the banking industry, as the CFPB’s consumer complaint database has shown, and describes CBA member institutions as having “very much caught the spirit of the whole enterprise.”
Cordray described the housing market meltdown as producing an overreaction marked by very tight credit, citing concerns by many that the cost of protecting consumers would constrict the availability of credit and drive many financial service providers out of business. While affirming that much has been done to ameliorate that situation and to secure the lending process, he describes credit as still being too tight, but able to be put in a healthier and less fearful perspective than the initial response to regulation displayed.
“There is ample opportunity in the mortgage market as it continues to heal, and you should be doing what you do best: serving your customers through great deals and great customer service. Homeownership still remains the most effective engine of wealth accumulation for the American middle class, and you are the ones who are making that happen and rebuilding a key marketplace that failed this country so brutally less than a decade ago, “ Cordray remarked at the end of his address.