“I think it sometimes stifles that growth or innovation because nobody wants to be under the [regulation] of the CFPB,” she added, “but at the same time, if that keeps the car on the road and keeps the market moving along, I think on the whole we come out to the good of having the CFPB perform the services that it does.”
Will states step up on the mortgage regulatory front?
What the new regulatory framework facing the mortgage industry will look like is anyone’s guess. The CFPB is far from the only agency acting as a mortgage watchdog, although the Trump administration has yet to give any indication of whether it’ll continue to exist in a stripped-back form or if states will step in to fill the void.
That means some uncertainty will probably arrive in the short term, according to Richardson, with key questions set to include whether current TILA-RESPA Integrated Disclosure (TRID) documents remain in use or be replaced by updated ones, and what the regulatory differences might look like from state to state.
“I’m sure it would be disruptive in the short term until it’s settled out what laws we’re now reverting back to and [whether those encompass everything – even just the changes over the last five years within the industry,” she said.
Lenders operating across multiple states will be keeping an especially keen eye on developments as they attempt to get a grip on what their regulatory framework will look like.
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