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-- -- the Consumer Financial Protection Bureau unveiling new mortgage disclosure forms and a proposal to expand what is considered a high cost mortgage but my next guest says let the changes could end up costing.
-- the home -- joining me is David Stevens he's CEO of a Mortgage Bankers Association and forma by the way assistant secretary.
At the department of housing and other than development and -- David thank you for joining me -- they're trying to get rid of these.
I guess -- tried to simplify.
The process is -- anything wrong with that.
Now affect simplifying the processes.
A wonderful it.
Objective and if there's anything we've learned through this housing crisis -- that too many Americans did not understand the terms of the mortgage that they were getting so.
Any effort to make that process easier and more -- to understand for families across this country is critically important as we move forward.
And have a they propose to do that because I know most people when they go to closing sit there with a stack of papers to the ceiling and that just a couple of these bookmarks and -- supposed to initial.
I mean any of these people really looking at what -- signing away.
I doubt it very much.
-- a lot of paperwork that that the key here is the numbers in trying to get the terms of the mortgage explained up front that's are required under something called the real estate settlement procedures act.
As a matter of fact there was say the most recent change was just eighteen months ago.
These entire forms -- just changed and implemented across the country.
Well we haven't really had a chance to fully test them yet but it cost the industry.
Hundreds of millions of dollars and in many ways it made it more expensive in some cases for consumers to get a mortgage so our goal here.
For the Consumer Financial Protection Bureau is to make sure this time if they're gonna make a change again is to get these forms right because.
If we just go through an extraordinary amount of change once again eighteen months on the heels of the most recent one.
And it doesn't improved disclosure for consumers but just simply adds costs.
That would be a bad outcome.
David does does this new proposal does it put caps on points and fees and -- kinda thing and could that frighten away potential -- Well look there's some there's two components to that to this sub set of proposed rule making this an 11100 page document so tells you how much we all have to.
Understand as we go forward here but part of it has to do with -- caps on what's called high cost lending provisions -- mortgage finance -- yes it doesn't -- New caps on points and fees thinks we call tolerances.
-- -- -- frighten away lenders necessarily but our greatest concern is that it could impact.
Particularly bars would lower loan amounts.
Because that fees collected if -- caps may not be enough to cover the costs of originating of mortgage.
That could hurt underserved families middle class Americans and that's.
One of the things that we want to look at much more closely and work with the CF PB to make sure we get this right.
Very good and very very quickly David this is a proposal.
When would this take affect.
If in fact it's all agreed upon.
The media are part of this is that other post -- comment period is -- 120 days so we have until all the fault to get our comments send a OK and try to help guide the CF PB it would it would go into effect sometime next year anything to make that process players could find me alright Ted David Stephens of the Mortgage Bankers Association -- thank you very much for joining us appreciate it thanks.