CFPB Looks to Delay Implementation of Qualified Mortgage, Debt Collection Rules
The Consumer Financial Protection Bureau (CFPB) is considering delaying implementation dates for the recent debt collection and Qualified Mortgage (QM) rules that have not yet gone into effect. The CFPB will also again start collecting data on home loans, credit cards, and prepaid cards.
“I will be assessing regulatory actions taken by the previous leadership and adjusting as necessary and appropriate those not in line with our consumer protection mission and mandate,” acting CFPB Director Dave Uejio wrote in a blog post last week. Changes include ways to “explore options for preserving the status quo with respect to QM and debt collection rules.”
As reported in American Banker, in June 2020, the CFPB extended the QM rule until April 2021, delaying an exemption from strict underwriting directions for Fannie Mac and Freddie Mae. Many anticipated that under President Biden, the Bureau would try to delay the effective dates of several rulemakings that began under former CFPB Director Kathy Kraninger.
The Bureau is also seeking to delay two debt collection rules finalized in October and December. The rules would restrict how often debt collectors can call borrowers to seven calls per week. Collectors would also have to provide disclosures on old debts that have exceeded the statute of limitations.
Additionally, Ueijo is directing the Bureau’s research division to resume collecting Home Mortgage Disclosure Act data that was put on hold in March. The CFPB has also stated that it will continue data collection for credit cards, and small business and clean energy loans, to better understand how borrowers are affected during the pandemic.
With a new Director appointed by President Biden, the CFPB is expected to use its enforcement, market monitoring, and supervision tools to gather additional data and conduct more types of research. It can also require financial firms to file specific reports to help with issues such as foreclosures, evictions, and mobile home repossessions.
“Our agency now faces a test on whether we can, using all the tools Dodd-Frank gave us, forestall further similar economic and social catastrophes,” wrote Ueijo. “In doing so, we need to sharpen our focus on the consumer experience.”