In February, Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, released his strategic plan for the agency, including the loosening of regulations with the goal of making it easier for Americans to borrow money, including mortgages for home purchases.
Critics of the plan immediately recalled stories from before CFPB’s founding in 2011, when subprime mortgages that couldn’t be paid back led to mass foreclosures and a housing crisis that lasted years during the Great Recession.
As of yet, it’s unclear if deregulation will lead to sweeping changes to how people – and how many people – can purchase property with a mortgage, or if it could trigger large-scale predatory lending again.
In times of fierce competition, those in any industry – including mortgage lending – can neglect their overall mission and place immediate profit over long-term success. Sanjiv Das, CEO of nonbank lender Caliber Home Loans, explains: “Lenders lose sight of their responsibilities to make sure they give the right credit to the right consumer.”