Coakley delays new mortgage regulations
Massachusetts Attorney General Martha Coakley is delaying new regulations cracking down on the mortgage industry after lenders raised objections.
Many of the new rules were scheduled to take effect Thursday. But Coakley is pushing the effective date back to Jan. 2, saying some lenders aren't ready to meet the requirements for mortgage loans that were recently originated, but haven't yet closed.
Some lenders have indicated that the tougher regulations might cause them to drop out of the Massachusetts market for certain types of mortgages.
Among other things, Coakley wants to change compensation rules for brokers who arrange mortgages. She says the current system creates potential conflicts of interest.
Brokers fear the changes will drastically cut their compensation. The attorney general says there is confusion over the issue and she plans to issue a clarification. (AP)
