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New Regulations Could Impact Lending

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  • Description

    FBN's Peter Barnes breaks down the battle over proposed changes to the mortgage market.

  • Duration 2:17
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Gas could be going up again new regulations on home mortgages could result in a huge cut in lending and it goes back -- have a big impact on the already.

Fragile housing market -- abounds in Washington with the details on this story data.

Well -- actually mortgage lenders and consumer groups are in a frenzy here over one of the top issues from the financial crisis it's the new legal definition of a safe.

Desirable.

Mortgage that this new standard will determine who qualifies for a home loan more easily and likely at lower cost for lenders billions of dollars in loans and revenues are at stake in this fight the lobbying has intensified two months before the Consumer Financial Protection Bureau is expected to issue its decision on the standard the Mortgage Bankers Association says that last Thursday about twenty top mortgage executives met with the director of the CF PB Richard core -- And separately that met at the white house with president Obama's top housing advisors and his chief of staff and -- housing secretary on this issue.

Representatives of the association also met April 16 with all of the governors of the Federal Reserve including chairman Ben Bernanke.

Sources close to the discussions say that also about three weeks ago MBA president David Stephens and Michael hide the president of wells Fargo's mortgage mortgage division.

The nation's largest home underwriter.

Met with court -- top deputy rise dot today.

And the president's one of the president's top housing advisors James -- and warned them that Wells Fargo could withdraw.

From a and chunks of the mortgage market if the CF BB issue standards the bank thinks are too strict Ashley interest things that lots of talking treatable what are the two sides specifically fighting -- Legal rights that the fighting mainly centers on homeowner's rights to sue if they can't make their payments and the bank for closes on them consumer advocates want continued writes for homeowners to sue lenders.

But the mortgage bankers are pushing for broad -- protections for lenders.

From lawsuits if borrowers qualify under these new standards now without them they say.

They could quit underwriting an estimated one in five home loans.

What you of course could hurt the fragile housing market could -- living alone under those circumstances all right Peter bonds in Washington thank you very much.

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