Oklahoma Bankers Association Counsel Praises New Mortgage Servicing Rules

By Brus, Brian | THE JOURNAL RECORD, January 25, 2013 | Go to article overview

Oklahoma Bankers Association Counsel Praises New Mortgage Servicing Rules


Brus, Brian, THE JOURNAL RECORD


Response to new mortgage servicing rules released this month by the federal Consumer Financial Protection Bureau has been mixed but surprisingly positive, financial industry experts said.

"It's a nice mix," said Mary Beth Guard, legal counsel for the Oklahoma Bankers Association. "Where the Consumer Financial Protection Bureau had discretion, it has exercised it in such a way that it appears to be very reasonable. There are some bankers who are concerned about the efficacy of some of the new changes.

"We had a number of Oklahoma community banks over the last few years, when we experienced a flurry of new laws and rules, who basically said, 'I'm out of here. The regulations are becoming too burdensome,'" she said. "What I'm telling bankers now is that it's safe to get back in the water."

The more than 3,500 pages of changes are a result of legislative action in 2010 that formed the consumer lending watchdog agency primarily to protect homeowners from unexpected charges levied by mortgage companies. Congress focused on mortgage servicers because those companies were key in the nationwide housing crisis precursor to the recession, foreclosing on homes when borrowers missed payments. Proponents of the CFPB said the mortgage industry could have done more to keep the market healthy.

Guard said some of the changes will have little practical effect on Oklahoma community bankers. Rules addressing the determination of a borrower's ability to repay and what constitutes qualified mortgages are already being followed by most small banks, she said. The new CFPB rules will probably bother large lenders that have been loose with their documentation standards, she said.

Criticisms of the industry have included foreclosures lacking full documentation and an inability of borrowers to shop around to choose a more cost-effective mortgage service, effectively creating a captive market. Buying the rights to collect payments also has been a lucrative practice when new fees are added to late payments.

The overall thrust of the CFPB's rules, which become effective January 2014, is that mortgage services will be expected to help consumers avoid losing their homes, even to the point of disallowing foreclosure processes while a borrower is trying to arrange lower monthly payments.

Some of the CFPB's rules deal with earlier stages of mortgage lending before a consumer gets in trouble. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Oklahoma Bankers Association Counsel Praises New Mortgage Servicing Rules
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.