The Mortgage Bankers Association (MBA) and the Consumer Mortgage Coalition (CMC) sent a letter to the Federal Trade Commission (FTC), urging it to coordinate efforts with the new Consumer Financial Protection Bureau on new rules involving mortgage advertising. The MBA and CMC made this request out of concern that a proposed FTC rulemaking on mortgage advertising could result in ‘conflicting and overlapping’ rules.
‘All of the rules have the same purpose – consumer protection – so there is no benefit to rules that duplicate or, worse, contradict each other,’ the letter said. ‘We request that the commission postpone its rulemaking on mortgage advertising and, instead, engage in a coordinated rulemaking on this subject with the bureau.’
The letter also asked the FTC to consider the Dodd-Frank Act prior to moving ahead with its own rulemaking.
‘The mortgage markets are in the midst of a painful retrenchment,’ the letter said. ‘Loan products that were widely available just a few years ago have disappeared. The provisions in the Dodd-Frank Act will likely ensure that the nontraditional loan products and loans with more lenient underwriting guidelines will not return to the marketplace. As the commission and other regulators move forward, we would recommend that the regulators take into consideration the effects of the new law on the types of products that will be available in the marketplace given the statutory changes that have been enacted since 2009.’