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CFPB structure ruled unconstitutional

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Mortgage Professional America | 11 Oct 2016, 11:54 AM Agree 0
In a huge blow for the CFPB, an appeals court has ruled its structure unconstitutional
  • Keith | | 11 Oct 2016, 01:22 PM Agree 0
    It should be a congressional oversight panel only
  • Griff | | 11 Oct 2016, 01:35 PM Agree 0
    Abolish would be nice. It really is detrimental to many consumers, and puts many small businesses at a disadvantage. We need free markets, this agency makes that nearly impossible.
  • Joe the Lender | | 11 Oct 2016, 01:38 PM Agree 0
    AMEN... Except at the end of the day, you'll just probably get some oversight committee of nut job democrats like Elizabeth Warren and the old Barney Frank, so we'll be just as screwed with asinine industry killing rules and regulations that realistically do nothing for the consumer except make getting a mortgage more expensive and time consuming.
  • Myra White, Realtor | | 11 Oct 2016, 01:59 PM Agree 1
    The Board may be a thorn in your side but it has done what it set out to do, provided much needed protections to American consumers when the finance industry failed to do so. Can we please overlook our convenience and recognize that if we had stepped up to the plate this would not have been necessary? We brought it on ourselves.
    Did they go overboard? Yes, but that's because we took a deep dive and went "under board".
  • Mortgage Broker | | 11 Oct 2016, 02:08 PM Agree 0
    It's about time! It's a shame that we have had to put up with this mess for years and nothing gets done until the presidential election time. Frank and Dodd have helped to create this big mess in the mortgage industry. I guess they didn't know anything else to do such as study economics. They have nearly doubled the closing costs for consumers in an effort to protect them from mortgage originators. They slowed down turnaround times to make it more difficult to make money and consumers now get discouraged with the time it takes to close a mortgage. What Frank and Dodd wants is NOT what consumers want. They sure sold us something that doesn't work. Can we get our money back! Has any politicians ever heard of progress? It's no wonder we cannot compete globally and our national debt is skyrocketing! Vote for TRUMP!!!
  • disgusted | | 11 Oct 2016, 03:03 PM Agree 0
    of course they will not remove CFPB all together .. Secret Tax .. the CFPB is only designed to penalize and issue violation fees .. politically it is said they will and have not raised taxes .. so they create a back door to disguise ... CFPB has only cost the consumer money , time and anguish.

    it is not for the consumer in any way fashion or form
  • Realtor | | 11 Oct 2016, 03:19 PM Agree 0
    Hey, if we didn't have a generational economic meltdown that broke so many of our families, we wouldn't have this agency. And guess what, the activities of Wells Fargo years AFTER the crisis shows a lot of lenders didn't learn anything from it. You don't like the result? It's making your life harder? Tough. Get your house in order or expect more of the same.

    The argument in setting this thing up was that a Consumer Product Safety Commission existed to protect consumers when their toaster was catching on fire, but no such agency existed when the economy was catching on fire. I think that's a fair argument. Certainly the banks were doing not one single thing to protect their consumers if such protection was not in the banks' self-interest. That gets proven again and again.

    BTW, a court ruling the structure is not appropriate is not at all the same thing as a court ruling that the activities of the agency are not appropriate. They will restructure and go on. As they need to.

  • Kathy Patsfield MLO 282252 | | 11 Oct 2016, 04:13 PM Agree 0
    With all the changes they have put on lenders, where is the benefit to the borrower???? TRID, Dodd/ Frank , every bit of these changes have done nothing for the borrower. On a purchase they have 30-60 days to close and escrow, the CD goes out they cannot sign until day 4, so docs sit in escrow unsigned. They have had 30-60 days to assure themselves they want to purchase or refi, and now they need another 4 . Are we children that are not capable of making a decision in 30-60 days that we need another 4 ? Rate locks are expiring, the borrowers are irritated do not know why they cannot sign due to some law some idiots put in place.
    Lets talk about appraisals! Before the appraisal management was [put in place appraisals cost $325-$450.00, now our borrowers are paying $700 for a townhome right in town? Paying $1100-1400 because they are on an acre or so, and we cannot get an appraisal for three weeks and again the borrowers rates are expiring.

    Lets talk about how made the bad mortgages: Countrywide pay option arm that many lender took advantage of the borrower, I agree.... Some new exactly what they were doing buying a million dollar home with a 1% payment, when they in no way could afford it. I remember a rep. calling on our office. "Hey" give the borrower the highest margin and a 3 years prepay on the Option Arm, we will pay you 5 points. Our comment to him is DO NOT bring that garbage into our office, our LO's will not be doing those mortgages.

    Obviously many in our business made a fortune and guess what? They are not longer in business.... Then there is good ol' Fannie and Freddie that put out the STATED, $1.00 income, Liars mortgages. How did that go? Not well at all, but it was nice of them to try to put the blame on Brokers and Mortgage Bankers. Here we are today most of the crooked thank goodness did not survive. Lets go back to the prior to DODD/ Frank (which we all know their wrong doings) lest go back prior to TRID as most say , TRID: THE REASON I DRINK. Leave us alone to do right by the borrowers, not your rules that have cost the buyer to pay higher rates, higher fees higher appraisal and lock extensions. Let us do our jobs which does benefit the borrower..
    Kathy Patsfield
    Vision Mortgage
  • Fed Up | | 11 Oct 2016, 05:12 PM Agree 0
    Hillary has already pledged to uphold and strengthen the CFPB when elected. It is the Gestapo and needs to be abolished entirely.
  • SRD | | 11 Oct 2016, 05:39 PM Agree 0
    At least someone, in this case PHH (my employer) stood up to these bullies and said, "NO NO NO!" Imagine being fined $109,000,000 retroactively for a common business practice which was legal and served the consumer's best interest when in place, EVEN THOUGH the practice was terminated with the law changed? The CFPB is a bully with too much power and too little oversight. PHH just proved that notion in court. I'm proud of my firm for standing up.
  • Eyes wide open | | 11 Oct 2016, 06:46 PM Agree 1
    Why were AMC's started? You don't remember? The mortgage companies were putting pressure on appraisers to come up with the values needed to make the mortgage work. If the appraiser didn't get the number he lost the business. Hey Mr Appraiser if you get this number I got 10 more right behind it. Hey Mr Appraiser can you wait until the mortgage closes and then we can pay you....Oh sorry that mortgage never closed. Hey Mr Appraiser I need the highest value you can get ...can you get a few thousand more? Hey Mr Appraiser can you pull comps I need....That was a sure fire way to get things done, make a boat load of money and create chaos all at the same time. Appraisers didn't have the guts to fire the companies that strong armed them because they were making more money than they ever had. Then they started to complain that the pressure was too great to get escalating numbers and sales prices. They began to tell EVERYONE that would listen about how they were being treated and thus HVCC was created. Agents had no problem telling the borrowers to write a contract more than list so they could get their dream home. Did the agents reduce their commission to the list price? Homeowners had no problem using their equity like an ATM machine. Didn't see anyone telling those folks it wasn't a good idea. Fannie/Freddie didn't tell the American people that everyone needed to own a home and here is how were going to approve everyone. When everyone got to own a home then everyone became an investor. I didn't see anyone telling their clients maybe that 3rd and 4th house wasn't a good idea. No, they closed mortgages and made money just like everyone else. Not all of us involved were bad but I have no desires to go back to what was. Not only have appraisals gone up but so has title insurance, processing fees, underwriting, compliance costs, overhead, and a plethora of other costs, so lets not just blame AMC's. We are all paying the price for our past mistakes.
  • DML | | 12 Oct 2016, 12:06 PM Agree 0
    Congressional oversight essential. I don't mind it as has been focused on the big banks and somewhat leveling the playing field.
    However, having an autocratic leader, at some point can easily put the pressure on small biz USA and we can be adversely effected so oversight is needed.
  • | | 12 Oct 2016, 01:12 PM Agree 0
    ok well I still know the appraisals get reviewed by a reviewers and I have heard about changes being made and still some pressure being put on the appraiser. It is never going to be perfect but why $700 appraisal on a townhome in town. $1400 because you have a few acres. The management companies started up and they are making good money again off the borrower, it is not the appraiser getting all of. Yes things have gotten better because in the beginning the appraiser were being paid some under $200.00 for an appraisal. Now it is name your tune again NO benefit to the borrower...

    I know and have worked with really good honest appraisers, never had an issue with any of them. I know a lender that put so much pressure on them to bring in whatever she wanted, she threaten them. Again another crooked lender and the appraisers I knew would not work with her at all....I also know after this all came in to play they could not longer pay their bills, put food on the table. Think that is a lie , far from it. One chicken to last 3-4 days, one of them had to file BK and had a stroke. You worked 30 years as an appraiser doing the right think, then you are on a rotating list with 300 other people. Lenders pull their own comps besides the appraisal to back up the appraisal they received. Where is the benefit to the borrower paying 700-$1400 for an appraisal. I just received an email that came from Colorado and they were charged $3000 for a SFR on some land.. How can anyone say any of this is a benefit to the borrower..
  • Eyes wide open | | 12 Oct 2016, 05:51 PM Agree 0
    Started appraising March 12, 1984 with a pencil, graph paper and a typewriter, FHA's were done with pencils on carbon paper and a polaroid camera. Fast forward to May 1, 2009, HVCC started and I lost all my business over night. Clients that I had built personal relationships with for 15 years were gone. I drove a school bus for $11.85 an hour an entire school year to make ends meet for my family. I never did anything illegal and yet, I was out of business because of appraisers not standing up for themselves, crooked mortgage officers, wall street investors and homeowners over extending. Driving a school bus was not my dream (absolutely nothing wrong with school bus drivers as I learned many lessons from them) so I decided to expand my horizons and worked with the GSE's for several years and now I am with an AMC. I am a better appraiser because of all the jobs I had to go through. I can tell you we do not rotate 50 appraisers in any area within the 50 states we do business with. The upcharge of $200 for that in town condo, we pick up the difference. We made a business decision because of TRID so the borrower would not pay extra and the need to redraw docs. Right now Colorado is writing their own price on what to charge. When the market slows down who do you think is going to get our business? Not the appraiser who wants to stab us in the back for $3,000 or the appraiser that wants to jack his/her fee up and tell us how supply and demand works. We have appraisers who make a very good living working with us. There are many appraisers out there that have been filling out appraisal forms for years that have no clue what they are doing. They're form fillers because that's how they were taught and they are paid very well for filling out forms. When these form fillers are asked for additional commentary they start to peacock and tell us how things are done as if I'm not an appraiser. If they had any clue as to what they were doing the revisions would never have been sent. We put no pressure on our appraisers and there are many times we tell our clients "no not happening". I know that AMC's are scum of the earth, stole the appraisers money and don't do anything but rake in the cash; however, ask the appraisers or our clients I have helped (for free) rebut the repurchase letters they received. I think they might have a different opinion. Is anyone in the industry aware, that here very soon, every AMC to be on the national register (required), will be paying $25.00 per appraiser on their roster EVERY YEAR? For most national AMC's that's about $125,000 each year not counting the state registrations and bond money each state asks for. What's not funny is they can change their fees at anytime up to $50.00 per appraiser.No one likes being painted with a wide brush and neither do AMC's. These are just my observations about how government programs have changed how I see things. Doesn't make them right or wrong just my observations.
  • Andy | | 13 Oct 2016, 03:28 PM Agree 0
    Thank goodness there is someone here that has some sanity. Do people never learn? What part of 2007 do these people not remember? I'm so tired of people who complain about regulations because it may add 10 minutes of work for them; or corporations who still rake in profits of billions of dollars while dealing with "burdensome" regulations. I applaud the CFPB for holding people and corporations accountable for their policies. And I also say we need more Elizabeth Warrens who actually want to see accountability from executives like Stumpf.
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