Mortgage rates get a break from incoming regulator

The fees, both general and new risk-based fees and announced by DeMarco earlier, could have raised interest rates by up to three quarters of a percentage point.

(Read more: Mortgage rates to rise, but not because of tapering-yet)

After the DeMarco announcement, mortgage lobbyists hit Watt hard, and were apparently successful. Given the implementation of new mortgage rules from the Consumer Financial Protection Bureau going into effect in January and the new lower loan limits at the Federal Housing Administration (FHA) and other mortgage banking regulations still being discussed, the higher fees were just too much for the industry, and the industry let Watt know.

“There’s too much uncertainty in the market to implement a radical policy that has no rational basis to it,” said David Stevens, CEO of the Mortgage Bankers Association. “My own estimation is that it would be highly unlikely he [Watt] would implement fees so radical as the ones proposed.”

Article source: http://www.cnbc.com/id/101293139

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