A consumer protection agency that was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act is set to roll out a series of new regulations for lenders.
The New York Times reports that the current head of the Consumer Financial Protection Bureau, Raj Date, announced that the CFPB would be coming out with an new rule at the beginning of next year that will put new regulations on whether or not a person is worthy of obtaining credit from a mortgage lender. Date, a former employee at Deutsche Bank and Capital One, said that the regulations would effect not just banks but also institutions that provide nontraditional credit
. "For the first time, nondepository institutions will be federally supervised alongside their depository counterparts," Date said at an American Banker conference in Washington, D.C., according to the news source. "This is a profoundly important change." One of the co-sponsors of the reform legislation, U.S. Representative and Massachusetts Democrat Barney Frank recently said that resistance to the regulatory reforms would further damage the economy. The Boston Globe reported that Frank spoke to the Mortgage Regulator Forum and warned of the consequences of a revolt against the new legislation.