The Consumer Financial Protection Bureau's new rules for mortgage lenders reflect a belief that an overly restrictive rule would have been more harmful to consumers than no regulations, says Richard J. Andreano, Jr., a partner in Ballard Spahr LLP's Business and Finance Department.

Mr. Andreano said the CFPB was "trying to get it right" with the new rules, and understood if they were too restrictive it would hurt consumers in the long run. He said that the mortgage rule that drew the most attention concerned the determination of a borrower's ability to repay, adding that "things could have been worse."

"Usually a new rule is more constraining, not more liberal," Mr. Andreano said. "I think the Bureau looked at issues presented by the Fed's proposed rule. There were a number of things the Bureau decided, and on other issues the Bureau expects to still make changes."

Related Practices

Consumer Financial Services
Mortgage Banking