CFPB Files Interim Rule on Mortgage Originations

Pending a transfer of authority from Dodd-Frank to the Consumer Financial Protection Bureau, the bureau filed an interim final rule Friday that allows state-licensed loan originators to continue making alternative mortgages under federal law, rather than state law, under the Alternative Mortgage Transaction Parity act of 1982.

The bureau, still without a director, will have limited authority until a director has been confirmed. President Obama nominated former Ohio Attorney General Richard Cordray on Monday, but the confirmation process has been thwarted by House Republicans who say they will not support any director nomination until the bureau receives reforms.

The rule, which fills a regulatory gap pending the authority transfer, is the first major rule that the new bureau, launched Thursday, has filed with the Federal Register.


“Without an interim final rule that takes immediate effect, state housing creditors would no longer be able to make variable rate mortgage loans and other alternative mortgage transactions pursuant to AMTPA in states that prohibit such transactions, thus denying consumers access to that form of credit,” the CFPB said.

Under the rule, mortgage originators who are state-licensed can operate under AMPTA through July 22, 2012.

“The CFPB does not believe that Congress intended its amendments to AMTPA to create a regulatory gap that would interrupt access to credit,” the bureau stated in the Federal Register.

The CFPB is seeking public comment on the rule.

Written by Elizabeth Ecker

Join the Conversation (3)

see all

This is a professional community. Please use discretion when posting a comment.

  • Ms. Ecker,
    Are you saying that the House votes on this confirmation?  I am a little lost. 
    If the confirmation process occurs strictly in the Senate, what do House Republicans have to do with whether or not former Ohio AG Cordray is confirmed?  Strong opposition from the House is nothing new to the confirmation process in the Senate when the President is from one party and the House is controlled by the other.  The same was true during much of the Reagan and Clinton Administrations.
    House Republicans attempted and were successful at blocking a recess appointment of Ms. Warren to that position by some parliamentary maneuvering but now that the President has actually taken some leadership in this matter and nominated a candidate, what can House Republicans do?  They are trying to get legislation through Congress but Republicans do NOT have the votes in the Senate to override a veto by the President even if they could get those votes in the House.
    House (and most Senate) Republicans hate the whole idea of the CFPB and are doing all they can to elminate it.  But their fight is more noise than substance.  The only thing Senate Republicans can do is filibuster which most Republicans do not expect will happen.

  • The House’s involvement in the confirmation could have been made more clear in the article. The CFPB director is subject to Senate, not House, confirmation. However, the President could appoint a director without Senate confirmation if the Senate is in recess. The Republican-controlled House must allow the Senate to go into recess, which its leaders have vowed they will not do, thereby denying the President the option of a recess appointment.

    • Invisible Hand,

      We agree.

      Until the President withdraws the name of Ohio AG Cordray, it seems all of his cards are now on the table.  If Mr. Cordray is as cool under fire in Senate hearings as he was on the few times I saw him on Jeopardy, he should get through the process quickly that is as long as Republican Senators do not filibuster.

string(93) ""

Share your opinion