NAR Submits Comments on CFPB's Proposed Seller Financing Rules
On Oct. 15, 2012, NAR President Moe Veissi submitted comments to the Consumer Financial Protection Bureau (CFPB) on its Loan Originator proposed rule. NAR's comments reflect continued requests that the CFPB align rules pertaining to seller financing including standardization of definitions in the Qualified Mortgage (QM) rule, and an additional exemption for individuals providing seller financing who are exempt from licensing under the SAFE Act (which lets state decide who should be required to obtain a mortgage originator license).
Additionally, the letter expresses our concerns over restrictions on mandatory arbitration clauses and the disparate treatment of lenders with affiliates. Additionally, NAR expressed continued concern that added layers of regulations surrounding the mortgage finance business may result in further increases in costs and a continued reduction in competition.