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CFPB accused of ‘vague and uncertain’ rule-making

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Mortgage Professional America | 18 Feb 2014, 11:20 AM Agree 0
The U.S. Chamber of Commerce is lashing out at the CFPB for pursuing 'regulation by enforcements settlement' rather than writing clear rules.
  • Mike Lewis | | 18 Feb 2014, 11:36 AM Agree 0
    I think everyone in this industry feels unsure of what the rules are and scared of the day the CFPB walks in your office. We all want to play by the rules & it is hard to understand what set of rules we are playing with now. The rules keep changing it is hard to keep up and comply.
  • Rick Barber | | 18 Feb 2014, 11:40 AM Agree 0
    Could not agree more with his David's. I have personally seen more and more community banks getting out of the mortgage business as they are overwhelmed with all the new regulations and the fear of being fined. How is this helping the consumer????
  • Cary Michael | | 18 Feb 2014, 11:50 AM Agree 0
    Fines = Revenue

    That's what any government agency is about.

    Clear rules = minimum fines = less revenue and they have to be able to justify their exisitence.

  • Steve Reed | | 18 Feb 2014, 12:04 PM Agree 0
    David is right on target with his comments. The CFPB needs to make regulations clear and understandable. They should try to work better and closer with the true Lending Professionals to get our Industry moving forward and actually benefit our customers. Seems the CFPB won't rest until it's just one large bank owned by the Government. What a tragedy that would be for all homeowners!
  • John Somers | | 18 Feb 2014, 12:06 PM Agree 0
    Rick, I am going to take your statement one step further. How is it that much of what I have heard and read leads one to believe the
    only one that see's any good to come out of all these new regs is the CFPB themselves?
  • Tobias | | 18 Feb 2014, 12:13 PM Agree 0
    This letter would have substantially more political impact coming from an entity like NAR.

    The USCoC is little more than a right wing political action committee which dilutes this important message. Democrats will ignore the USCoC, whereas, they will sit up and listen to NAR.
  • PacFore | | 18 Feb 2014, 12:18 PM Agree 0
    further proof that the cfpb is clueless about our business
  • 2Bsquare | | 18 Feb 2014, 12:19 PM Agree 0
    Mike, your dead on. The only thing that CFPB has been clear about are the penalties and the damage they can do to you and your business. Mr. Mondor has continued to be evasive and elusive. CFPB has morphed the FRB rule of not putting things into writing.

    Where I see a greater problem is the merging of the CFPB rules and the State rules. Many States do not want to give up their power and will take an even firmer stand on enforcement.

    Hang on for a bumpy ride.
  • Cheryl M | | 18 Feb 2014, 01:14 PM Agree 0
    I'm confused is Hircshmann referring to Consumer Federal Laws as murky regulations? The CFPB is in place to protect consumers; with that, their job is to enforce those federal laws aka. murky regulations...Let's give an example: Capital One today just released their new credit card "agreement" In that agreement it now states if you (the consumer) is in default or miss a payment, they (capital one) can contact anyone they want to collect their money. Okay folks that violates FEDERAL LAW. So..When Synbad from India is calling your Boss at your place of work asking you to pay your bills or leaving a message with the front desk clerk about your bills...What will you do then? Exactly, file a complaint with ???.. YES the CFPB! Hopefully, all of us are smart enough to alter that "agreement" before they issue you a credit card and then take their butts to court and sue for "pain and suffering" Yes there is case study on this suit. So, tell me is anyone contacting their local Chamber of COmmerce to resolve their consumer rights and protecting those rights? NO.
  • drew | | 18 Feb 2014, 02:32 PM Agree 0
    It will be of little avail to the people that the laws are made by men of their own choice if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood.

    James Madison

  • John Deleva | | 18 Feb 2014, 02:59 PM Agree 0
    The CFPB was intentionally structured to limit oversight and as such the CFPB will do what it damn well pleases. The theory behind the limited oversight has merit but the practical implications are down right frightening as Hirshcmann accurately describes. Congress had better write itself back into the process or this agency will do more harm then good. The choice is oversight driven by the political winds and fortune of one party or the other or a rogue agency...I'll take political over rogue any day. The Constitution was simplistically brilliant, replete with checks and balances as the framers were keenly aware of the little kings lurking.
  • R Stone | | 18 Feb 2014, 03:05 PM Agree 0
    I agree and another article I saw said the refused to provide clarification when asked. The first sign something was off was when the head of the cfpb when the rules was crafted Raj Date, left right after to form a new company to specifically cater to non QM clients. That is the kind of stuff that will happen when you have appointed officials with dictator like powers.
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