Banks Say Simpler Mortgage Form Could `Stifle’ New Products
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For Elizabeth Warren, the Obama administration adviser setting up the Consumer Financial Protection Bureau, simpler mortgage paperwork is a “regulatory sweet spot” that will cut lender costs and borrower confusion.
That view hasn’t stopped battle lines from forming around the prototype “mortgage shopping sheet” the agency is planning to publish today. Industry groups say the revisions may lead to limits on innovation and variety in lending, while consumer advocates are resisting changes that might limit borrowers’ right to sue to stop a foreclosure.