“The agency continues to grow in power and magnitude without any accountability to Congress and the people,” Texas Senator Ted Cruz said of the CFPB after introducing legislation that would disband the bureau, according to The LA Times. “The only way to stop this runaway agency is by eliminating it altogether.”
Cruz isn’t the only Republican hopeful who has been critical of the regulator, with Ben Carson calling the CFPB the “ultimate example of regulatory overreach.”
Republican candidates have argued the CFPB’s oversight has saddled lending institutions with exorbitant regulatory costs and caused an increase in time spent on regulatory paperwork.
And while many brokers have been critical of the CFPB’s tactics, its latest act – implementing the TILA-RESPA guideline on Saturday – is the best move the regulator has made, according to one player.
“No, the CFPB has not been a good thing (for the industry),” Scott Mackie, a senior loan officer with Supreme Lending, told Mortgage Professional America. “This TRID change is probably going to be the one good thing it has done … TRID will be good for consumers.”
And while the CFPB has certainly frustrated a number of financial services companies with its oversight, the LA Times assembled a list of positive changes the regulator has implemented. They include; forcing credit card companies to return nearly $2 billion to consumers convinced to add costly and unnecessary add-on programs, requiring lenders to verify borrowers can repay loans, securing $480 million in debt forgiveness for students of costly private colleges, and creating its consumer complaint database.
"The Consumer Financial Protection Bureau is the little agency Wall Street banks and debt collectors love to hate because it works for consumers, not them," Emily Rusch, executive director of the California Public Interest Research Group, told The Times. "For the first time, we have an agency that's looking out for our interests instead of the banks' interests."
The creation of the CFPB was authorized by Dodd-Frank, which was signed into law in July 2010 in response to the Great Recession.
The CFPB has implemented a number of changes in the financial services industry that have frustrated players and politicians alike.