April 18, 2014

CFPB mortgage rule experts move to Wells Fargo

April 21, 2014 – Wells Fargo recently hired two former CFPB officials involved in creating the bureau's new mortgage rules to help the bank expand its mortgage policies and home loan capital markets, according to reports.

American Bankerreported that Peter Carroll, previously CFPB's assistant director of mortgage markets, and Lisa Applegate, previously the bureau's mortgage-implementation lead, are now senior vice president of capital markets at Wells Fargo Home Mortgages and strategic quality manager within Wells' home lending capital markets group, respectively.

CFPB recently testified in a regulator oversight hearing by the House Financial Services Committee. The bureau discussed its rules on auto lending, small-dollar loans and qualified mortgage requirements, as well as recent allegations of employment discrimination at the bureau.

NAFCU has weighed in on the new mortgage rules and the increased burden on credit unions with CFPB and Congress. Orion FCU CEO Daniel Weickenand, also a NAFCU Board member, testified in January on the same subject, describing his Memphis-based credit union's decision to stop offering non-qualified mortgage loans in light of the new regulations.

Testifying before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, Weickenand said, "I cannot tell you how difficult this decision has been. Orion takes great care in placing our members with the right mortgage product, and the QM standard will inevitably force us to turn many creditworthy borrowers away."

NAFCU was the only financial trade association that opposed credit unions being under watch of CFPB.