Can we maintain a constructive relationship with the CFPB?

by Ryan Smith11 Sep 2014
By David Lykken
Special to MPA

I am often criticized by some in the industry for showing too much support for the CFPB. Isn't this organization the enemy? Shouldn't we be fighting against the CFPB if we want to support the mortgage industry? Isn't the CFPB actually bad, not just for the industry, but for the whole economy?
Don't get me wrong: I do think that regulation has become too strict in the past few years, and I think agencies like the CFPB have in many instances overstepped their bounds. But, when I encourage people in the industry to work with the CFPB on issues, there is one thing I keep going back to: we are the ones who created the CFPB. Not literally, of course. But it is our complacency and lack of self-governance that necessitated the creation of the agency. We at least owe the CFPB our cooperation.
Many of the people who are working for the CFPB are people from our own industry. We may perceive them as having "joined the dark side," but I don't think they see it that way. I think, when it all comes down to it, we in the industry and those who regulate us want the same thing. We want a vibrant, growing economy that is fair and provides the best opportunities for all parties involved.
Knowing we share the same goals, we should at least be willing to have a constructive dialogue. Things get done, not when we yell back and forth at each other, but when we are willing to have civil discussions. So, let's start getting things done. Let's be open to dialogue.

David Lykken is 40-year industry veteran who consults on virtually all aspects of mortgage banking. David hosts a successful weekly radio program called “Lykken On Lending” ( that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals.



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