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CFPB a ‘rogue’ agency with ‘no accountability’

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Mortgage Professional America | 20 Nov 2013, 10:10 AM Agree 0
A politician slammed the Consumer Financial Protection Bureau today for its 'breathtaking lack of accountability.'
  • Viva la Revolucion | | 20 Nov 2013, 10:27 AM Agree 0
    I'll store this article in the "Tell Me Something I Don't Already Know" file. Truly disgusting what we've allowed ourselves to become in this country.
  • Debbie from Sandpoint | | 20 Nov 2013, 10:27 AM Agree 0
    Great maybe of the 5 member commission we could have 3 of them with some Mortgage background and common sense!
  • MD | | 20 Nov 2013, 10:28 AM Agree 0
    I agree with Rep. Jeb Hensarling, Cordray reminds me of Hitlar too and probably eats puppies and babies for dinner!
  • Dan | | 20 Nov 2013, 10:30 AM Agree 0
    Why is this being brought up now! Didn't the industry tell the congress that placing the CFPB under the Federal Reserve would create this monster with no accountability to congress, the courts or the president. the chest pounding could have been avoided if the CONGRESS did a better job!!! So Congress, fix it
  • Paul | | 20 Nov 2013, 10:33 AM Agree 0
    Congress established it, they can abolish it. Don't keep whining, do something about it.
  • Brad | | 20 Nov 2013, 10:45 AM Agree 0
    Yes, this outburst after the CFPB is in full swing and issuing legislation. Not the best timing Representative Hensarling! Watch interest rates increase while ATR and QM legislation get implemented - Obama will NOT be thrilled about the housing market going backwards.
  • George McGuire | | 20 Nov 2013, 10:56 AM Agree 0
    There need to be term limits with any such appointment and a revolving door policy. Already the previous director is alleged to have virtually eliminated types of mortgage mortgages and personally moved on to a private sector position in which he will be rewarded for his company's doing just the type of mortgages now eliminated for FNMA, FHA and Freddie Mac. There must be checks and balances, if not, any market sector or industry or company having influence over these unaccountable bureaucrats will have an unfair advantage over their competition. In the long run that mechanization of power will hurt consumers as competition is eliminated. Please wake up and correct this inbalance before it is too late!
  • Mike Beerling | | 20 Nov 2013, 11:11 AM Agree 0
    Agreed, Nice of congress to vote on a bill they knew nothing about. At least someone is trying to fix it. I would also like to know where all of the monies form the fines they have issued is going? A little transparency here would also be nice.
  • Griff | | 20 Nov 2013, 11:15 AM Agree 0
    Paul hit the nail on the head. Do something about it. Whether there is one head of this department or a party of five it does not matter. The agency simply has too much power. The latest group of forms to be signed by borrowers at closing and the fact they must have the docs 3 days before closing simply increases costs to the consumer. It adds not one iota to the clarity of the transaction. Borrowers have the option today to get docs 3 days before closing. They simply have to set their closing with that in mind.

    Buyers will now sit with their possessions on a truck somewhere, paying fees by the day until they can go sign even more docs to close. Borrowers will pay more interest on mortgages like FHA where interest is paid a month at a time, etc. The list goes on and on.

    cfpb = A half billion dollar budget, no accountability collecting fines and fees which are not returned to the injured. Overpaying employees who are learning on the job at the expense of consumers.
  • Robert Myers | | 20 Nov 2013, 11:21 AM Agree 0
    a board vs a director is a better approach and is how many other agencies work. I wont disagree on making those changes. Leaving congress out of the CFPB is good since congress hasnt been successful in managing the most critical functions they are responsible to handle. Richard Cordray has taken a common sense approach according to the MBA and other industry groups.
  • George McGuire | | 20 Nov 2013, 11:38 AM Agree 0
    The CFPB is redundant and ineffective. Are they going to replace federal and state examination of financial institutions? What is they are trying to prevent? Shouldn't their focus be educating consumers and empowering them? The country does not need and can't afford a new police force focused on correcting the problems of 2006-2009. Forward all of this discussion to lawmakers. Ask them to seriously consider industry recommendations to correct the problems congress sees.
  • Jeff Frank | | 20 Nov 2013, 11:45 AM Agree 0
    Seeing what the CFPB is doing could make me flip back to voting Republican if only the GOP could move back to the center and stop catering to the religious right on social issues.
  • Bill | | 20 Nov 2013, 11:52 AM Agree 0
    The 5 person board was discussed up front and overuled as I remember it. Why would anyone in their right mind have given this much power to any single person or group without checks and balances is unbelievable to begin with folks. But no one would listen at the time. The powers that be in this country are turning into embeciles backed up by political dictators. They didn't teach this in my civics class.
  • john Deleva | | 20 Nov 2013, 12:47 PM Agree 0
    While at first much like in the case of health care reform the Republicans warned of the unintended consequences of the CFPB and like the health care debate they were shouted and voted down. As the CFPB carries on at the speed of light with its seek and destroy the enemy approach we can only hope the consequences predicted by some will become the basis for a bipartisan cry for relief as we are now witnessing in the health care debate. In time there will be no denying the consequences of an agency with little or no oversight and our elected officials will move to legislate themselves back into process.

    Checks and balances are a fundamental part of our way of government, the fact they were almost entirely left out in the formation of the CFPB is astounding. We (the American People) allowed a crisis (the normal cover for power grabs) to be used to erode many of the fundamental principles of democratic governance. We can only hope our elected official on both sides of the aisle come to reject the course the previous majority has unwittingly placed us on. If we want accountability in the CFPB we will need to start by holding those that voted for the current CFPB structure accountable...send them home.
  • George McGuire | | 20 Nov 2013, 01:19 PM Agree 0
    I love the very true terminology, "a crisis (the normal cover for power grabs) to be used to erode many of the fundamental principles of democratic governance." It is a true characteristic of the power and influence in our economy. Transparency desparately needed here!
  • James Wojtaszek | | 20 Nov 2013, 02:19 PM Agree 0
    This is making mortgages unattainable and to costly for anyone that qualifies. The CFPB does not protect anyone other then themselves knowing they cannot be fired. With everything that involves interest rates and having to deal with the CFPB cost for this or that is a major obstacle for anyone in the industry. These guys have no idea what it entails to deal with a customer and have them sign an over abundance of paperwork that they do not understand for their protection. I think customer are smart enough to know what they are getting themselves into and if not they have 3 days on a refinance and time on a purchase before it closes. During that time they can have someone review the documents to be sure they are getting a good deal. The way this industry is going nobody can qualify for a house and if they do would they want to be subject to all this garbage. We as Brokers are already regulated by the Lenders and now the Lenders are not subject to the 3% QM or QRM because they do not have to disclose which in turn will cost the customer more monies. Great job CFPB remember we are all consumers. I have been in this industry over 25 years and I love helping customers achieve the American Dream and I will continue doing this.
  • Rob | | 20 Nov 2013, 02:28 PM Agree 0
    The fact that most of you who are making comments haven't bothered to find out how the CFPB is structured and how its accountability is structured (go learn about the Financial Stability Oversight Council) doesn't mean the CFPB is not transparent. Just means YOU are lazy. And parroting the likes of Jeb Hensarling (R-TX) who is one of the worst Texas Tea Party anti-everythings doesn't help your argument.
  • Griff | | 20 Nov 2013, 02:44 PM Agree 0
    I have a mortgage I submitted a week ago. We should be ready to move to the closing dept by Monday. The borrower wants to close Weds. This is awesome service and at a very competitive rate. Does the cfpb think this borrower would want to wait 3 days to close so they can look at a HUD or do they want to close Weds and go to the new vacation home over Thanksgiving. This 3 days should be a feature they can waive because the majority of them would.
  • Viva la Revolucion | | 20 Nov 2013, 03:16 PM Agree 0
    @Rob - Nice attempt to disparage an entire thread of consistent, well thought out comments. It was only a matter of time when anti "Tea Party" comments would come out. What's next, branding everyone as racists to shut down any opposition? You are the proverbial frog in boiling water, and I will only laugh when the jack booted bureaucrats come knocking on your door. See how much understanding how they are "structured" helps you out then.
  • Frank Ruzicka | | 20 Nov 2013, 03:35 PM Agree 0
    Does anyone see the irony in the advertisement for an AMC at the bottom of the article?
  • DW | | 20 Nov 2013, 03:45 PM Agree 0
    Can we please start getting someone on these boards that knows something about the workings of the mortgage business instead of politicians that think that their decisions are helping the consumer! They have no idea the damage they are causing until it is too late.
  • Cheryl M | | 20 Nov 2013, 03:46 PM Agree 0
    Again, R-Texas has great thoughts and wonderful words; but he need to write a Bill to end it. Ranting is great, but at the end of the day it gets nothing accomplished. Get to work Jeb, it should not take you too long you're only getting rid of (1) one...Cordray and his CFPB. Enter new rule in SAFE Act. Now that the White House has their focus on Obamacare reveiling one more debacle won't rollover the House and Senate. Just sit back and wait for it to collapse it worked for Obamacare. Anyway, the Feds will overrule Cordray any day with what is already registered in the Federal Registry...Mortgage Lic. Act aka SAFE Act, it already protects consumers.
  • Cheryl M | | 20 Nov 2013, 04:06 PM Agree 0
    My bad, I meant to say the DOJ and the feds can investgate Cordray for any wrong doing. the safe act is already at the CFPB. Anyway just alter/add new rules to the "ACT" by writing new BILL.
  • Patti | | 20 Nov 2013, 05:53 PM Agree 0
    This is the most reckless, irresponsible , ignorant, self important, corrupt, double dealing, lying, sneaky, whining, power grabbing, morons that ever crapped behind two shoe heels.
  • Mike | | 22 Nov 2013, 06:14 AM Agree 0
    No reason to sugar coat it, Patti.
  • Tom | | 22 Nov 2013, 11:35 AM Agree 0
    So what's the difference between a mortgage originator telling a consumer a lie to get what they want and the President telling the people of the USA a lie to get what he wants. Why is the CFPB silent on this matter. The President violated the Consumer's Financial decision making process about Health Care, gave a half baked apology and is free to go about his business???? What he did was fraud! Cordray and the CFPB should go after him with equal measures of going after the fraudulent Mortgage Company!
  • LP | | 22 Dec 2013, 12:19 AM Agree 0
    By making complaints to the CFPB the purported "lender" has actually been forced to answer complaints. That's the kind of accountability we've needed the past 10 years as the financial system was brought to it's knees. Anyone notice the billions the Wall St giants are paying up these days while trying despreately to avoid criminal prosecution?
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