In 2024, the Trade Group on what he described as ‘regulatory knots’ expressed, criticized government initiatives such as the Basel III end game rule, a Financial Stability Supervision of the Council (FSOC) Report in which an increased supervision of independent mortgage bankers (IMBS) by the American Congress and state rulers, and the Consumer Financial Protection Bureau‘s (CFPB) campaign against so -called’ junction ‘rates.
“We had serious concern that this would lower the competition and increase the costs for borrowers,” Escobar said in its opening comments on the MBA Secondary and Capital Markets Conference in New York on Monday. “I would have pointed out that more than $ 93,000 of the final price of a new house is due to government regulations.”
Now that the regulatory shuttle seems to be hiding back to loosen some limitations, the industry is concerned that the government withdraws too far. Escobar noted that the Trump government first used a “chainsaw, then an ax and ultimately a scalpel” to cut as much as possible of federal bureaucracy.
“As we know, some cuts initially considered agencies where mortgage bankers and borrowers trust – Hudthe Va” FHFAand even the CFPB – could disrupt the marketplace and sow confusion and uncertainty, “said Escobar.
While agency heads and federal courts have delayed or reversed some of the changes by the promoted changes Department of Efficiency of the Government (Doge), “Many loan programs at HUD and other agencies remain confronted with an uncertain future,” she added.
Another care, according to Escobar, is the state of the US economy – in particular the potential impact of a trade war on prices, supply chains and the strength of the dollar – that contributes to both investors and consumer anxiety about a possible recession.
“A year ago, the capital markets responded to the usual external factors – fed with actions on interest rates, in the coming elections, global events,” Escobar said. “The fast and dramatic change that we experience may seem overwhelming.”
