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Lawmakers clash over CFPB’s role

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Mortgage Professional America | 05 Apr 2016, 11:05 AM Agree 0
The chair of the Senate Banking Committee blasts the CFPB as unaccountable to Congress -- but the committee's ranking Democrat defends the agency
  • JS | | 05 Apr 2016, 01:30 PM Agree 0
    What's 11.2 billion divided by 25 million? And what "consumers" ever saw that money. Another lying lawmaker!

    Dodd-Frank is an abysmal failure from the consumer's standpoint, but a bonanza from a regulator's perspective.
  • | | 05 Apr 2016, 01:45 PM Agree 0
    Dodd-Frank has been a failure for consumers. Appraisals are more expensive, mortgages in general are more restrictive and more expensive than they would be otherwise. Lenders across the nation are backing away from anything that the CFPB has not specifically endorsed.
  • trid hater | | 05 Apr 2016, 02:09 PM Agree 0
    TRID is beyond pathetic ... and look at the path of destruction it is leaving as the days go by allowing such a bogus operation to continue. How about the news that Kinecta Credit Union pulled out of the TPO wholesale sector .. costs to keep up with the compliance issues and TRID regulations forced them to pull out . now how many jobs are lost due to that .. these people who are losing jobs are consumers themselves .. tell them that TRID is so beneficial and protective for the consumer ... typical propaganda ... the very ones that are not affected by the very rules are the only ones that are saying life is great . what's the problem ... real world people suffer and so the garbage keeps on cycling
  • Michele, Akron Ohio | | 05 Apr 2016, 02:21 PM Agree 0
    I encourage EVERYONE to email Senator Brown and encourage him to come work with us for a day reviewing the "consumer friendly" documents that Dodd Frank has produced and now this awful TRID..........please.
  • Charles | | 05 Apr 2016, 02:28 PM Agree 0
    As an appraiser, I enjoy listening to you sales people cry because "it's not like it used to be". Half of you people should have done time!
  • Short Memory | | 05 Apr 2016, 02:30 PM Agree 0
    I'm a licensed real estate broker for the past 23 years. No regulations are perfect, but let's not let the perfect be the enemy of the good. The recession of 2008 should have taught us a lesson. Let's not repeat it.
  • Griff | | 05 Apr 2016, 03:01 PM Agree 0
    The one post has it right. All of these rules and regs have done nothing, zip, zero to aid most consumers. I noticed this week appraisals for my one lender went to $520 and I still will be assigned the bottom of the barrel as to quality and service. Other lenders are over $550. And the appraiser is getting less and less of the money.
  • Nancy Viejo | | 05 Apr 2016, 03:02 PM Agree 0
    All of the above. Plus, the real day to day affect on the consumer when they cannot waive the 3 days for the CD. I just has a first time homebuyer whose daughter and grandaughter will be living in the house. The grandchild was born with a defect and was being released from the hospital at which was supposed to be by the closing date. Apparently the child has an issue with being transported more than once from the hospital. We had to ask the doctors to let the child stay in the hospital because the borrower could not waive the 3 day period. When a government makes useless, senseless rules to push a political agenda, everyone suffers except the government.
  • bruce b. hailstone, real estate broker | | 05 Apr 2016, 03:23 PM Agree 0
    As a 30 year Realtor, and as an independent broker, i have seen excellent boutique lenders get wiped out as well as excellent independent escrow companies forced out of the business due to the onerous requirements to remain in business... TRID has wiped out all but the "2 Big To Fail" institutions who can afford the ridiculous financial requirements. On the consumer side, all it has done is increase the cost of buying a home, totally screwed up the appraisal industry by creating middle men, who's appraisals go out to the lowest bidder while the middle men made profits while the consumer receives a lesser quality end product. Dodd Frank, with all it's good intentions is yet another example of BIG government gone wild! It's totally screwed up an industry that needed some fine tuning, but got a lobotomy instead! The public has gotten screwed and government has gotten fatter and more ridiculous!
  • KAS | | 05 Apr 2016, 11:39 PM Agree 0
    Seems this administration likes to have Boards unaccountable to anyone. Certainly protects the little guy doesn't it!
    AND the fines/ consequences of having a TRID error are out of line; it is felt CFPB does not have to identify the problem or give warning to correct the problem before fining, etc.! So even if it was an innocent error and not a deliberate error...no chance to correct. Pay the fine, go jail etc. lose your livelihood.... Seems it scares the crap out of us mortgage brokers who do not have the money to sue CFPB !! ,CFPB is not good for the industry's big or small businesses and increases the consumer's mortgage cost; AND does not give them freedom they had previously to shop rates due to timeline restrictions.

    CPFB is not ethical for the industry. CFPB are lining their pockets!
    Of course, they were a ' know it all' when we tried to submit our insights, experiences and frankly wealth of knowledge. Doubt if they even read any of our comments!!! When did CFPB creators/auditors ever write a mortgage, help make sure the consumer got the best mortgage possible for them, meet the consumers expectation or even do a genuine good faith estimate ( oh and when did the word 'estimate' change it's meaning?).

    Considering their record for lawsuits, obviously something is wrong with CFPB's thinking - their EGO got in way.
  • Rick | | 06 Apr 2016, 06:51 AM Agree 0
    Pathetic comment- half should have done time?!?! Really? Agenda against producers much? How about you post a constructive comment backed with facts and not a ridiculous opinion. BTW if the appraisers didn't inflate values back in the day, we would all be in a better place- appraisers, lenders, those evil sales people, FNMA/FHLMC oh yeah and the consumer.
  • Chris | | 06 Apr 2016, 01:47 PM Agree 0
    Did the CFPB miss that the credit card companies are charging the least able to afford, usury rates?
  • Veto | | 06 Apr 2016, 06:15 PM Agree 0
    The one's who have posted that "us people" should have done time, what do you know? I never put someone in a sub prime mortgage back in the day. You mean to tell me the consumer did not know what they were getting into back in the day when anyone who could breathe was a getting a mortgage... "come on man". Do you really think NINA mortgages (no income, no assets) that the consumers did not know it was a bad thing? Lets think about this for a minute, if I make 30K a year and buying a 250K house with an adjustable rate, will I be able to afford it? NO!!! People need to think when making their decisions, but everyone these days thinks they are entitled to everything! You are not entitled to own a home, you earn it!

    The CFPB has caused an extra 3 day waiting period for refinance mortgages, which already have a 3 day recession period for the consumers protection. They have basically added a recession period on Purchases now since you have to wait 3 days after the acknowledgement of the CD by the consumer. Government is basically saying the American people cannot make their own decisions and want to make it for them, or to think about it. After everything you go through in getting mortgages thru underwriting who the hell wants to wait 3 more days to close on their new home? Contracts expire, interest rate locks expire, income docs expire, asset docs expire... do you really want to take that chance and have to go back to underwriting? I am not even going to get started on appraisers/appraisal process, I will be here all day. HVCC has been an absolute disaster for our industry and has caused appraisal cost to double or even triple in some states!!!! More cost to whom you might ask, YOU THE CONSUMER! But the CFPB was designed to help the consumer.... "Come on man"... Get it together.
  • Rogue agency | | 12 Apr 2016, 11:39 AM Agree 0
    The poster child of a rogue agency.
    RU from AZ
  • Bill J. | | 19 Apr 2016, 01:15 PM Agree 0
    Yes, I agree. The CFPB underlying structure requires some amendments to its organizational structure and oversight along with operating procedures, including more oversight by the Department of the Treasury senior management, and by the proper congressional committees that should be providing review and critical support. Do we want the CFPB shut down, no? When we look at the TRID process currently in place, and the issues still surrounding it like the additional three days for review of the Closing Disclosure by the future borrower prior to the issuance of the mortgage closing documents and the three days for recession after those documents are signed, it has been a cost structure impediment to closing any qualified mortgage. As to the structural process itself, well, some of us that have been in this industry since the mid-1970's remember the consternation caused by the implementation of the HUD-1 in 1978 which was regarding as a death knell by lenders, closing agents and attorneys, along with every other mortgage participant at that time. It took over a year for all of the parties to the mortgage transaction to get comfortable with that document, and the new closing process. TRID documents are clearer for both the borrowers and the lending industry participants to describe then the HUD-1 ever was. Amend the process wherever required, and provide the structural changes where needed, and let's move forward.
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