Readers respond: Is the CFPB hurting the economy?

by MPA12 Apr 2014
A House Financial Services Committee meeting this weeek investigated whether the actions of the Consumer Financial Protection Bureau and other government regulators were harming the economy. MPA readers had some very definite ideas about the CFPB's effect.

"The CFPB is really hurting the mortgage industry, big time," said reader Tom Jones. "...It ends up hurting the very people they are trying to protect."

"The actions of the CFPB have demonstrably hurt the economy in at least two major ways," reader George agreed. "First, their regulations have cost business immeasurable hours of time, effort and legal fees in order to comply with superfluous disclosures. Second, their actions pursuant to Dodd Frank and compensation to date have worked to eliminate competition. A further result is the reduction of available competitive finance in low economic neighborhoods."

But reader Mary pointed out that the CFPB, however flawed, was created to address a real problem.

"The whole mortgage industry learned an expensive lesson," she said. "This over regulation which by the way, I agree, is choking the life out of our industry, is the extreme reaction to the lack of self regulation."

What do you think? Let us know in the comments below.
 

COMMENTS

  • by Brent Warner | 4/13/2014 7:55:49 PM

    CFPB does not know anything about real mortgages because they are all bought off by big buisness, and they do not care if they help people or not. It's all a show to act like they are doing something, and in reality they are ripping off mortgage industry employees, and home owners!!!

  • by Joe | 4/14/2014 11:12:48 AM

    I think they need to follow the rules they make and watch the effects more closely. Better yet tell the mortgage industry what they think needs to be fixed and allow suggestion from real mortgage Professionals. The rules them make in my opinion do not have the results they are looking for.

  • by Jim V | 4/22/2014 10:58:49 AM

    The CFPB is now the rule writer for the financial industry. A poor one at that, but still the rule writer. They are behind on isssue of several rules and the ones they do complete they continue to change depending on which way the wind is blowing. Other regulators now must try to understand the rules the CFPB has written and re-written and enforce them on the banks that each of these regulatory agency regulate. Sounds like a mess, it is for sure. Have any of these new rule writers actually help a customer with a mortgage?

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