WASHINGTON — A House Financial Services subcommittee hearing Wednesday will explore whether recent changes in loan-origination rules will hurt consumers' chances of getting a mortgage.
"While the financial crisis led to numerous federal state laws that changed the mortgage origination process, no overall review or cost-benefit analysis has been conducted," said Financial Services Chairman Spencer Bachus, R-Ala., in a press release.
The hearing before the subcommittee on insurance, housing and community opportunity will include witnesses from the Federal Reserve Board, the Department of Housing and Urban Development and the new Consumer Financial Protection Bureau, among others.
The industry and Republicans on Capitol Hill have expressed fears, for example, about the potential of new rules from the consumer bureau — created under the Dodd-Frank Act — to limit credit.
"With the addition of a massive new financial regulator under the Dodd-Frank bill, the CFPB, the potential for market-distorting and costly rules remains a top concern, and our aim is to ensure that federal action protects consumers, promotes competition, and allows small businesses to grow and create jobs," said Rep. Judy Biggert, R-Ill., who chairs the subcommittee.
