The mighty Consumer Financial Protection Bureau has delivered new works. We have until August 2015 to get used to the new mortgage Loan Estimate and Closing Disclosure, which will replace the current Good Faith Estimate, Truth In Lending, and HUD-1 forms.
These forms are an improvement over the 2010 GFE, but so would have been three blank pages, the Magna Carta, or the Gettysburg Address. The demise of the 2010 GFE will instantly reduce demand for landfills.
Many people are so frustrated with government efforts like this that they hate government. Not me. We need financial regulation. Smart regulation, which is possible.
After the credit bubble, which fed the housing bubble, a period of reinvention was inevitable. The Dodd-Frank legislation began the process, a great, emergency spasm. Four bad ideas stick out: the Volcker Rule (more another time), skin in the game (retention of 5 percent of mortgages securitized), “qualified mortgage” (QM) and “qualified residential mortgage” (QRM) gobbledygook intended to define good underwriting for mortgages (we know how to do that), and creation of the CFPB.
The very last thing that our government needed was a new agency, its duties overlapping the Fed, the Comptroller, the FDIC, HUD, the SEC, the FHFA, the FTC, and two or three others on the payroll but forgotten.
New agencies are compelled to do things. They are incapable of reviewing old procedures and saying, “Really pretty good. We could fiddle with it, but not make it much better.” They cannot ever acknowledge that the conditions they were created to prevent have died on their own.
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”