"If the CFPB stops publishing standardized APOR tables, lenders might not make loans to lower income borrowers, given the risk of coming in too far above the APOR and potentially getting sued, the senators wrote. Or, they might raise interest rates on loans to compensate for the increased risk the market will price in without the liability shield that comes with making a QM loanskewing the cost of homeownership and cutting off credit access for borrowers."
"In November, the Trump administration declared in a court filing that the CFPB's funding is unlawful and that the agency cannot legally request funds from the Federal Reserve under the Dodd-Frank Act. Under Vought, the CFPB has suspended much of its work and is now engaged in a legal effort to fire 90% of its staff. The letter was signed by Sens. Elizabeth Warren (D-Mass.), Raphael Warnock (D-Ga.), Ruben Gallego (D-Ariz.) and Andy Kim (D-N.J.)."
In November, the Trump administration declared CFPB funding unlawful and said the agency cannot legally request Federal Reserve funds under Dodd-Frank. Under Vought, the CFPB has suspended much of its work and is contesting employment of most staff. If the CFPB stops publishing standardized APOR tables, lenders may avoid loans to lower-income borrowers or raise interest rates to compensate for increased risk, skewing homeownership costs and cutting off credit access. A CFPB spokesperson said the bureau will outline an alternative APOR calculation and clarify that using it will not trigger enforcement. Lawmakers urged Vought to respond by Dec. 16 and cited industry warnings about severe consequences if the CFPB is shuttered. Virtually all residential real estate transactions depend on CFPB rules and consumer protections.
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