Industry Leaders Urge Supreme Court to Uphold Financial Protections for Homebuying Transactions
On May 15, the National Association of Realtors (NAR), in conjunction with the Mortgage Bankers Association (MBA) and the National Association of Home Builders (NAHB), submitted an amicus brief to the U.S. Supreme Court regarding the case of the Consumer Financial Services Association of America v. Consumer Financial Protection Bureau (CFPB).
The case, which the Court will hear in the October term, examines the constitutionality of the CFPB's funding structure and could affect current rules governing mortgage and purchase transactions. This would have profound ramifications for the nation’s housing market. As a result, NAR, MBA, and NAHB are urging the Court to limit consequences that could ultimately affect consumers and the broader economy, NAR reports.
Nearly all home purchase transactions for more than a decade have been made in accordance with CFPB regulations and consumers have come to rely on the protections provided by the disclosure and transparency requirements imposed on lenders and real estate professionals under those rules. Should the Court issue a broad sweeping decision that calls into question those regulations, uncertainty and chaos could ensue with a lack of clarity around what rules govern mortgage and purchase transactions, in addition to the potential liability for industry professionals.