On July 15, Consumer Financial Protection Bureau ("CFPB") Director Richard Cordray provided insightful testimony on a number of subjects in an appearance before the Senate Banking Committee. During the question-and-answer session, Cordray indicated that the CFPB will be revisiting the income-verification standards of the Ability-to-Repay Rule at some point in the near term. He commented that he was "increasingly aware of and concerned about" the ability of seasonal, temporary, or self-employed workers to be denied credit opportunities on account of documentation requirements. He added:
We need to look again at our mortgage rules in light of that. It's not an easy thing to figure out how to handle, but it's something we need to go back and think more about.
Cordray further indicated that the CFPB and its sister regulators would be "diagnostic and corrective" in the early stages of the TILA-RESPA integration of mortgage disclosures:
And so for the first period, which may last many months, the other agencies and ourselves as we work on this, if we see errors, we will point out what they are and how they should be corrected. We will not be looking to be punitive to people.
Finally, Director Cordray commented that the credit card market is "considerably better" than 10 years ago, noting improvements in customer service, fees charged, and add-on products.
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