CFPB to Scrutinize QM Rule as Part of Larger Policy Review

Originally published on June 17, 2022, by Rohit Chopra for CFPB.

Markets work best when rules are simple, easy to understand, and easy to enforce. The CFPB is seeking to move away from highly complicated rules that have long been a staple of consumer financial regulation and towards simpler and clearer rules. In addition, the CFPB is dramatically increasing the amount of guidance it is providing to the marketplace, in accordance with the same principles.

Regulators have historically issued overly complicated and tailored rules for the existing regulatory landscape, as opposed to providing basic bright-line guidance and rules that can withstand the evolution of the marketplace over time. The CFPB aspires to more clearly communicate the agency’s expectations in simple and straightforward terms, which will produce more durable guidance and rules, in addition to numerous other benefits. While this task is difficult, we believe it is important to move away from the failed approach of the past.

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