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Lawsuit challenging CFPB's constitutionality can go forward, say appeals court

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Mortgage Professional America | 27 Jul 2015, 09:27 AM Agree 1
The CFPB shouldn't even exist, according to a lawsuit challenging the agency's constitutionality
  • Taxpayer | | 27 Jul 2015, 09:40 AM Agree 1
    The CFPB has done nothing more than increase the cost and reduce access to credit for the consumer. Shut them down!
  • mm | | 27 Jul 2015, 10:05 AM Agree 1
    I concur. I dont know who they think they are helping. Their lack of knowledge of the interaction between borrower and mortgage officer and the entire home purchase transaction has created a massive load of red tape. They slow down free enterprise in the United States.
  • Offended | | 27 Jul 2015, 10:16 AM Agree 1
    Additionally the CFPB has an open check book to the treasury, which eliminates any check and balance by Congress and the power of the purse. If they want 300 million for operational expense - it's no problem - just open the vault and take whatever you want. That is definitely unconstitutional
  • Brad | | 27 Jul 2015, 10:19 AM Agree 1
    CFPB is unconstitutional and the Dodd-Frank should be repealed.

    The appraisal process for residential mortgages is out of control and needs to be re-written by people actually in the residential mortgage business.
  • Corey Schwartz | | 27 Jul 2015, 10:39 AM Agree 1
    CFPB has no interest in protecting consumers, they are formed as an alternative to raising taxes. They simply collect any amount of money they need from anyone that is in the financial services industry. Costs to originate a mortgage rose from $650 in 2003 to over $7,000 in 2015. Almost all of the expense is due to the cost of compliance with CFPB rules.
  • 30 years and counting | | 27 Jul 2015, 10:56 AM Agree 1
    It is somewhat unsettleling to know how far off the mark the CFPB can be on some of topics. It is painfully evident that the authors of this debacle as well as the rule makers know little of how the market operates. Just imagine if they are so wrong in this instance, what about all of the other regulated industries in our country? Yeow!
  • Steve9800 | | 27 Jul 2015, 11:08 AM Agree 1
    As important, they have done nothing to help borrowers understand the terms and conditions.
  • Rick | | 27 Jul 2015, 11:08 AM Agree 1
    What happen to "free enterprise?" If the Consumer Finance Protection Bureau was wearing our shoes, they would understand the pain they are throwing around our country. Enough politics! It time to dump this agency and any other government agency that has no experience in the lending business. Consumer protection are only words the CFPB justifies there existence. If you had 100 average borrowers and ask them to explain all the required lending discloses, you'll find that most of them won't have a clue.

    The bottom line are the following: Over regulation of the lending industry; slowing down closing time and creating loss of business; and less Federal and State Taxes generated by small independent brokers because it's too hard to make a living. Our future growth of the lending business is over...if politics as usual.
  • Animal farm lives | | 27 Jul 2015, 12:10 PM Agree 1
    CFPB is run by banks and set up under the guise of consumer benefit. In reality, it is designed to remove competition and force yet another oligarchy. We are coming a state run country. Remember the days of working for the company store?
    Voters are too stupid and the courts are a dog and pony show by design to have the perception of fair.

    Bottom line - it aint going away. Get used to paying more for less choice, less voice, and less liberty. All "free" societies go through this very predictable cycles. We are at the end of free, until......

    Good luck to all
  • Doctor Dave | | 27 Jul 2015, 12:53 PM Agree 1
    Every time the government tries to help they end up hurting the consumer because their actions INCREASE CONSUMER COSTS, make no mistake about it. Simply put, the constantly do the wrong thing for the right reason! We do not need TRID, consumers get enough information to choke a horse now! And it is ridiculous not to allow a lender a little room when it comes to homeowner insurance premium quotes is absurd. No wonder Richard Cordray couldn't get re-elected in Ohio.
  • JM | | 27 Jul 2015, 01:02 PM Agree 1
    The pendulum has swung to far in this direction. It is time to deregulate and get back to a free market economy so the US can once again prosper. Some regulation is needed but this is way over the top.
    - Appraisal management is good but the AMC's need to make less or the pie and the appraisers more.
    - Loan officer licensing = junk it! This is not the securities industry. Stop trying to copy Wall Streets licensing system. The companies will regulate their mortgage officers or face the music.
    - Junk the 2010 GFE & the new Loan Estimate/Closing Disclosure. Bring back the 2009 GFE as it was the best form ever. Simple & itemized.
    - Junk QM = enough said! Whose idea was this one.
    Again it is time to unwind the insanity and deregulate. Have someone who actually does the job make the rules not politicians. What you really need to focus on is the RESPA violations of the mortgage companies getting in bed with realtors in the form of MSA agreements and related companies - that crap needs to stop. Hello where is the regulator on this glaring issue! No where insight because the big banks are paying the politicians to turn a blind eye to it. Wells Fargo = RESPA violator!!!
  • | | 27 Jul 2015, 01:30 PM Agree 1
    They ignore all laws in place and do their own thing! They should be SHUT DOWN!!!!
  • Dr Roy Foster, author | | 27 Jul 2015, 01:45 PM Agree 1
    Mortgage broker for 30 years...evil in government has grown to a point of serious madness. Power breeds more power then evil flourishes. Dodd and Frank were both very evil guys. The crash of 2008 was caused by evil and chronic corruption. Now we are suffering and the public's stupidity is paying for it. Learn the truth about evil in a series of books or
    It's time to make changes or our profession will be doomed. The nmls concept is one form of madness, overbearing hardship to most good people only to stop a few of the evil ones too who come and go. We now see evil in all institutions.
  • Donna Price | | 27 Jul 2015, 05:10 PM Agree 1
    The CFPB need to go as it is absolutely unconstitutional and has don't nothing but muddy the waters. Much like the NMLS, it is an albatross making the experience of the broker and the borrower alike a living nightmare. They know nothing about the lending process and have done nothing to really protect borrowers any better than RESPA TILA already does.
  • Donna Price | | 27 Jul 2015, 05:13 PM Agree 1
    well said!!
  • Kasey S | | 27 Jul 2015, 07:17 PM Agree 0
    CFPB - I have always felt unconstitutional - no checker to check the checker: Process for mortgage lending getting bogged down; consumer finds it difficult to shop rates as must make a decision under time to move forward; once mortgage is started, can be costly to change for originator and client; the fines are outrageous even if originators is very careful in their own checking; not always able to get back with borrower under the time limits and schedule customer to get signatures AND still the now upcoming 5 page for TRID is goofy. People do not add and give credit this way.

    The original GFE, 1 page, disclosed all the fees, shows prepaid finance charges, lenders fees/ and pricing credits, what is being paid off, interest rate, term.....And Customer signed the Estimate. ONE PAGE plus the Truth in Lending. Add up column, deducted the costs, add in the YSP, credit or deduct if a cost for the rate, reflect items being paid off in escrow! Plus Plus give the PITI /MI ..... Then we prepared the MLDS in California - simple!! !GO BACK TO THE ORIGINAL GOOD FAITH ESTIMATE (pre 2010).

    Frank/Dodd just trying to look like smart ----Let's have them Make a mortgage and Counsel the borrower. Have them use the old Good Faith and Truth in Lending (pre 2010)!!! and then the TRIAD and ask the customer which one THEY prefer!

    I know what the client will tell me! Keep It Simple...

  • ABBM | | 28 Jul 2015, 01:29 PM Agree 0
    Yes they did create red tape but I have to agree with the no tolerance laws and the escrow laws immensely. I had an investor many years ago who referred a tenant that wanted to purchase the rental. I took the application and about a week later she called me and told me she was going with a different company. I asked her why and she told me that my closing costs were thousands of dollars higher than his. I asked if he gave her a GFE, she said "yes". We went over the price differences; I found that he did not include escrows for taxes and insurance. I told her why it was important to escrow and she said that the other guy told her she didn't have to pay them; called me a liar and hung up the phone. The single mother of three lost her house a year later. I knew it would be hard for her to come up with a lump sum since her two waitress jobs couldn't afford her the down payment on the house. The escrow laws and no tolerance laws do actually protect people like her from predators who just want to make their pay check. It could have protected the lender from foreclosure in this case as well and the three kids would still have a home. It's very traumatizing situation to be in.
  • Freedom Fighter | | 28 Jul 2015, 05:28 PM Agree 0
    Government's plan in controlling the population is by playing watchdog to big bad corporations who are trying to rip-off the little guy. The average low-information citizen thinks government is the only way to be protected (instead of educating yourself and being a responsible individual). Corruption and apathy combined will be the eventual downfall of America. The CFPB is just part of the grand control plan.
  • | | 09 Aug 2015, 11:43 AM Agree 0
    The CFPB fines banks million's of dollars for what they say are violations. Where is all the money going, who's lining their pockets?
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