The CFPB unveiled the “qualified mortgage” regulations in January in a bid to protect the housing industry from a repeat of the foreclosure crisis at the center of the 2008 economic disaster.
The new rules are meant to ensure lenders verify the finances of would-be homeowners and that borrowers have enough income and assets to repay their loans.
Cordray countered that the general contours of the regulations have been apparent since the 2010 passage of the Dodd-Frank financial reform law, which both created the CFPB and requires the mortgage rules.
The industry will have had a year to prepare for the new rules when they go live in January, he noted.
“We have been responding to concerns, offering clarifications where needed, making sure that practical issues that are arising are being addressed,” he said. “We'll continue to work closely with them to see that these rules are implemented on time and that consumers can have the benefit of the rules and the industry can continue to move forward without further uncertainty of interim periods.”
Cordray also voiced plans to pursue a series of additional regulations cracking down on overdraft fees, deceptive practices in the credit industry and other “debt traps.”