American Bankers Association Contacts
Bob Davis (202) 663-5588
Joe Pigg (202) 663-5480
Dechert LLP Authors
Thomas P. Vartanian (202) 261-3439
Robert H. Ledig (202) 261-3454
David L. Ansell (202) 261-3433
Corey F. Rose (704) 339-3164
In response to widespread concern about a breakdown in the mortgage lending market that some have argued involved (i) lending practices that produced loans that had inadequate assurance of being repaid, thereby adversely impacting the ultimate holders of such loans and (ii) the placement of borrowers in loans that they did not adequately understand or were not financially prepared to repay, Title XIV seeks to prevent practices that may have led to these problems from occurring again.
The provisions of Title XIV will bring significant changes to the mortgage industry. These will include new specific duties on the part of mortgage originators to act in the best interests of consumers and to take steps to seek to ensure that consumers will have the capability to repay loans that they obtain. Title XIV will create incentives for lenders to offer loans that Congress and the regulators believe better protect the interests of consumers, and provide additional protection for borrowers under high cost loans. Title XIV includes significant new disclosure requirements and appraisal reforms. It also includes a series of consumer education initiatives.
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