The report said “increased oversight and regulation has led to an increase in compliance costs,” which limits the ability
of mortgage firms to spend more money “on developing more effective mortgage servicing platforms and technology.”
The Treasury recommended a slowdown in new regulations for mortgage servicers.
In particular, the report said, there needs to be “careful study of regulations
and the extent to which they may be holding back the supply of mortgage credit.”
One recommendation was to revise the definition of what constitutes a “qualified mortgage,” which can be guaranteed by Fannie Mae
and Freddie Mac, to encourage more expansive lending.
In a report released late Monday, the Treasury Department said the Consumer Financial Protection Bureau should be substantially stripped of its powers, accusing the agency of regulatory overreach
and saying the president should be able to remove its director.
Trump Administration Says Financial Watchdog Agency Should Be Defanged -
By ALAN RAPPEPORT and MATTHEW GOLDSTEINJUNE 12, 2017
WASHINGTON — The Trump administration called for the neutering of many of the central provisions of the Dodd-Frank Act as it offered
its most detailed plans to date for the unraveling of the financial regulations put in place after the 2008 financial crisis.
