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CFPB, House Republicans clash over proposed lending rule

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Mortgage Professional America | 02 Jun 2016, 11:07 AM Agree 0
The CFPB insists that short-term mortgages need to be reined in, but the head of the House Financial Services Committee calls the agency's proposed regulations 'sheer arrogance'
  • JustTrust | | 02 Jun 2016, 12:28 PM Agree 0
    Clearly out of bounds. However, not inconsistent with the ruinous impact of Dodd Frank.
  • gary H. | | 02 Jun 2016, 12:52 PM Agree 1
    Time to remove this agency for " cause" . Gustapo tactics, ignores Congress yet interestingly enough the banks have an escape provision.
    Scrap the Dodd Frank and make Dodd and Frank personally accountable. What about the conflicts that the sponsor Frank owns an AMC? GARY
  • Griff | | 02 Jun 2016, 02:10 PM Agree 0
    Well, that is special. They don't want them running rough shod over pay day lenders but it was ok to do that to mortgage brokers who are regulated by the states. YSP is no longer valid, brokers can't charge a processing fee, brokers can't charge anyone differently, brokers can't collect more than 3% in fees which includes fees of other parties, brokers can't order appraisals from reputable companies. Nope they had no problem letting all this happen. Most likely because the banks pay their dues to Congress. Meanwhile bankers are still breaking the rules on appraisal ordering and small savings and mortgages are breaking the TRID rules.

    There is no common sense when it comes to main street. Pay day lenders should have a ceiling. Credit cards should be a couple of points over prime. The government should be making zero dollars on student mortgages just like the do when they lend to the banks. Will we ever have a congress that works for the people?
  • Craig | | 02 Jun 2016, 02:43 PM Agree 0
    An attempt to make these products go away. The agency refuses to consider input from the industries it regulates.
  • Gwen A95 | | 02 Jun 2016, 03:02 PM Agree 0
    I agree with the CFPB new regulations for Pay Day & Auto Title Lenders because their fees and interest rates are extremely high and most people who get those mortgages are already struggling and can not afford their very high monthly payments. Their borrowers are from the intercity Urban areas who are living from pay check to pay check. I think the new rules the CFPB are purposing are design to help these people who are stuck in a financial crises and they certainly can not afford to pay those high bank overdraft fees on automatic debits that are charge multiples times on a checking account when the account holder do not have the funds the first or second time. This create more hardship on the consumer and put them deeper in debt. Republicans in Congress do not like these new regulations because they're always for the Big Banks and Wall Street and Big Corporations who do not want to be regulated and have Republicans in their pockets, they don't care about the 95% struggling Americans who need these type laws that the Democrats are putting in place to help.
  • Gup | | 02 Jun 2016, 04:07 PM Agree 0
    Since everyone posting a response to this have some sort of Finance back ground, I hope.... I will say this, I have seen abuse on both Consumer and Lender side. People over extend sometimes, and sometimes life just happens...Installing Ability to Repay Rules is never a bad idea. How can it be...Wouldn't lenders want a repayment??...Gouging helps no one, think about it!!
    So, I only hope these rules are implemented with responsibility on both parties.
    Let us not kill the Taxi Driver, while also making the rider aware that there is a fare at the end of the ride!!
  • Edo | | 02 Jun 2016, 05:32 PM Agree 0
    Clearly overstepping its bounds!!! No one oversees CFPB and that's wrong!!!
  • Steve A | | 02 Jun 2016, 07:06 PM Agree 0
    I absolutely agree with Hensarling. It is time that this out of control bureaucracy be at least limited by Congress. Let people and the states make any rules for these type of mortgages. Cordray would be better off trying to educate consumers rather than regulate the companies that provide services that they want and need.
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