No-Fee, No-Point Mortgages Not Viable, Bank Group Says

Law360, New York (October 18, 2012, 3:57 PM EDT) -- A banking industry group on Wednesday urged the Consumer Financial Protection Bureau to drop a proposal that lenders offer a no-fee and no-point mortgage, which they say would not be a “viable option” for most lenders, instead urging the bureau to allow lenders to provide other low-cost alternatives.

In its comment letter, the American Bankers Association says the proposal, which calls for lenders to provide potential borrowers with a loan option that does not include discount points or discount and origination fees, is overly strict and...
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