Monday, April 16, 2012

Lender fear impact of Dodd-Frank mortgage rule

WASHINGTON—U.S. mortgage lenders and real-estate agents are growing concerned a new set of mortgage-lending standards under development by a new consumer regulator will imperil the fledgling housing recovery and limit the availability of home loans.

In recent weeks, after meetings with consumer bureau officials, several real-estate industry groups and some consumer advocacy organizations have grown worried about how the Consumer Financial Protection Bureau could interpret the mortgage lending rules, which it is aims to finish by this summer.

In a letter to be sent to the consumer bureau Monday, 33 lobbying groups, including the National Association of Realtors, Mortgage Bankers Association and American Bankers Association, warn against an overly restrictive interpretation of the "qualified mortgage" lending rules, which are required by the 2010 Dodd-Frank financial overhaul law.

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