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Consumers back tougher regulation, favor the CFPB

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Mortgage Professional America | 12 Sep 2013, 05:09 AM Agree 0
While the mortgage industry still struggles to come to grips with increased regulation, it appears consumers are all for tougher oversight for brokers, banks and other financial institutions
  • Eric M | | 12 Sep 2013, 09:26 AM Agree 0
    This is because the general public has no real knowledge or understanding of what the true ramifications are and will be. While oversight can be a good thing, elimating competition (the brokers) is not and will probably cause "Higher Costs" to consumers who will be left with very limited options.
  • Michael | | 12 Sep 2013, 09:28 AM Agree 0
    Consumers want more oversight yet disagree with honest licensed originators when being informed of the misinformation provided to them by large portfolio (registered bank tellers) originators. With all of the Fed regulations in place, how is it that the larger lenders can still over promise without performing due diligence and under deliver once a real review of a consumers information is completed and get away with it?
    Could I be the only person seeing this?
  • Some 'survey'. | | 12 Sep 2013, 10:25 AM Agree 0
    2 bad the respondents weren’t asked to verbalize what specifically should be 'regulated', or what financial regulation means to consumer choices or costs. It’s like saying we are all want to reduce auto accidents, but who wants to give up their car? There were only 1,004 in the sample selected from various placed in the US, and it's likely respondents didn’t even know what ‘The CFPB’ stands for. What else would we expect from the CRL. Just read one of their ‘studies’ to see how they arrive at their ‘findings’. One example, like so many others, the CRL wants broker revenue included in the 3% cap, but not banks revenue. This makes no sense, is unfair, distorts the marketplace, and reduces consumer choice…and the CFPB bows to their pressure!
  • Wm Matz | | 12 Sep 2013, 11:44 AM Agree 0
    The move to more regulation completely misses the point. There are no bad mortgage products; the problem is bad matches between borrowers and mortgage products. Limiting products is just another, nanny-state type approach that hurts the market and leaves consumers with fewer choices.

    The right approach is to increase greatly the education and training requirements for ALL mortgage originators and impose a fiduciary duty on ALL originators. A focus on mortgage origination as a part of the financial planning process [rather than product sales] would go a long way toward ensuring that borrowers make wiser mortgage choices.
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