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Can we maintain a constructive relationship with the CFPB?

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Mortgage Professional America | 11 Sep 2014, 07:41 AM Agree 0
Should originators who want to support the industry be fighting the CFPB? Or is there a way for the CFPB and the industry to work together?
  • Katie | | 11 Sep 2014, 12:18 PM Agree 0
    Excellent, excellent article! Thanks!!
  • Jacob | | 11 Sep 2014, 12:24 PM Agree 0
    Many great points!
  • mortgage pro | | 11 Sep 2014, 01:32 PM Agree 0
    Isn’t this a rather childish way to frame your argument? It really sets you up to easily strike down what you yourself have proposed. Using words like “enemy”, “joined the dark side”, and “bad” is really unnecessary and is really insulting to anyone reading this article who is involved in this industry day to day. Let’s start with treating the reader as an adult.
    Everyone in this business now did not create the problem. Most if not all of us left in the business now were not involved in any of the unethical behavior that created the problem. There is also strong evidence that those that did try to report and stop that behavior were ignored or worse. Even when it did reach the enforcement agencies nothing was done. We only asked that they enforce the laws and regulations that already existed and the failure to do that caused a lot of these problems to get out of hand. The answer: more regulation.
    We welcome smart regulation. The problem is that CFPB does not understand our business, and that many of their efforts seem to be aimed at gaining public support. Any government bureaucracy, once created, is almost impossible to dismantle. I expect the CFPB to be around for many, many years. That doesn’t mean we have to like it or just take what they have to say without pushback. We should be vocal in our opinion about how the CFPB wants to regulate us; we should not act as if we are cooperating with them, but present a united front of opposition when appropriate. The CFPB certainly grandstands in their enforcement activities and perhaps we should in educating the public on the dangers of over-regulation. Everyone I know in this business sees the regulation choking off good business little by little. If the mortgage business is important to the economy, then the economy will suffer.
    Your solution seems to be just that. Let’s cooperate with them. But it has to be a two way street, and they have to stop looking to just punish the mortgage business, and start looking to cooperate with us if they want us to be partners in informing and protecting the consumer. There are many, many good people in this business that have devoted their entire working lives to the mortgage industry that have always treated their customers the right way. It is time for the CFPB to realize that and to realize what great partners we can be.
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