The mortgage market will undergo radical change on Jan. 10, when virtually every aspect of home financing will be commandeered by the Consumer Financial Protection Bureau. The consequences of government overreach for creditors and borrowers will be all too predictablemore costly products and services, fewer options and, worst of all, the erosion of economic freedom.
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The costs of the regulations have been mounting for months, as creditors reconfigure policies and procedures, reprogram loan origination systems, retrain personneland hire consultants and lawyers to navigate 3,500 pages of rules. Even more daunting is the prospect of a further tightening of credit, which will reduce creditors revenue, undermine recovery of the housing market, and raise a barrier to the wealth creation associated with property investment.