The CFPB's Missed Opportunity

Oct 22, 2020
Finance

SMITH BRAIN TRUST – The Consumer Financial Protection Bureau appears to have missed an opportunity to correct a nagging issue in its definition of a qualified mortgage, Maryland Smith's Clifford Rossi writes in HousingWire. And it goes to the heart of the borrower’s ability to repay.  

The CFPB, he writes, should take a holistic approach to credit evaluation – with the three C’s of mortgage underwriting. Beyond a borrower’s capacity, or ability to repay the loan, are credit and collateral. Here's what the CFPB should do now. Read: The CFPB Missed a Chance to Fix the QM Rule

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About the Expert(s)

Clifford Rossi

Clifford Rossi is an executive-in-residence and professor of the practice at the Robert H. Smith School of Business, University of Maryland. Prior to entering academia, Rossi had nearly 25 years' experience in banking and government, having held senior executive roles in risk management at several of the largest financial services companies. His most recent position was managing director and chief risk officer for Citigroup's Consumer Lending Group where he was responsible for overseeing the risk of a $300+B global portfolio of mortgage, home equity, student loans, and auto loans with 700 employees under his direction. While there he was intimately involved in Citi's TARP and stress test activities. He also served as the chief credit officer at Washington Mutual (WaMu) and as managing director and chief risk officer at Countrywide Bank.

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