The all-inclusive APR that figures into the Consumer Financial Protection Bureau's prosed mortgage disclosure forms has elicited a mixed reaction.

"Lenders love the idea of minimizing the threat of lawsuits tied to the Truth in Lending Act but argue the CFPB proposal's reliance on an overhaul of the annual percentage rate — a cost metric even the proposal says homebuyers don't use — is a mistake," writes American Banker’s Jeff Horowitz

Consumer advocates say including fees in the APR will help drive them down. The Mortgage Bankers Association expresses concern that higher APRs will trigger rules for high cost loans.

But “the broader concern is that many lenders think the APR is too flawed a tool to fix,” writes Horowitz.

Have an opinion? The agency has extended the comment period to November.

For the full piece see "CFPB Mortgage Reform Applies Wrong Fix to the Right Problem, Bankers Say" (may require subscription).