January 07, 2014

Sen. Warren Praises New CFPB Mortgage Rules that Make Families, Economy Safer

Video of Senator Warren’s Remarks Available Here

Text of Senator Warren’s Remarks Available Here

WASHINGTON, DC – In remarks delivered on the floor of the Senate this afternoon, United States Senator Elizabeth Warren applauded the Consumer Financial Protection Bureau’s (CFPB) new mortgage rules, which will go into effect on Friday, January 10.

Under the new rules, a lender must determine that a borrower has the ability to repay a mortgage before issuing the loan.  The rules will also prohibit brokers from being paid by lenders to steer customers into higher-cost loans and strengthen the mortgage market by improving mortgage servicing practices.

"Thanks to the consumer agency's new rules, families will be safer, pension funds and other investors will be safer, and our whole economy will be safer," Senator Warren said in her remarks. "And the rules will reshape the mortgage market for the better.  They will give people a better chance to buy homes and a better chance to keep those homes, and they will force mortgage lenders and servicers to compete by offering better rates and customer service, not by tricking and trapping people.  These rules will help markets work better, and they will reduce the risk that the economy will crash again."

Senator Warren highlighted the success the CFPB already has had helping consumers, including returning more than $3 billion to consumers who were cheated and resolving tens of thousands of complaints against financial institutions. The new mortgage rules will affect millions of families who own or plan to purchase a home.

"The consumer bureau's new mortgage rules show once again that government can fix problems," said Senator Warren. "Sure, we have to work hard, we have to fight against those who benefit from the broken system, and we have to stick with it even when the odds are against us.  But when we do those things, real change is possible in this country.  We're seeing that up close this week."

For more information about the new mortgage rules, a fact sheet is available at the CFPB's website here.