Consumers back tougher regulation, favor the CFPB

by Adam Smith12 Sep 2013

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.

A survey conducted by the Center for Responsible Lending (CRL) has found widespread, multipartisan support among consumers for tighter financial regulations. The survey found that public opinion strongly favors strict oversight of banks and financial companies, as well as the need for the CFPB.

"Financial regulation has been a divisive issue in Washington; by contrast, the electorate is strikingly united. Regulating financial services and products is seen as either 'important' or 'very important' by over 90% of voters, the survey found," the CRL said.

The group pointed out that the attitude toward financial oversight "transcends differences of age, race, geography and political party". The poll found 96% of Democrats considered financial regulation important, as did 95% of independents and 89% of Republicans.

The poll also found that 78% of consumers favor oversight for "mortgage brokers, payday lenders, debt collectors and companies the create credit reports and scores". Fifty-one percent of respondents had a favorable view of the CFPB, while only 12% held a negative view. Thirty-seven percent either had no opinion or had never heard of the CFPB.


  • by Eric M | 9/12/2013 9:26:14 AM

    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.

  • by Michael | 9/12/2013 9:28:05 AM

    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?

  • by Some 'survey'. | 9/12/2013 10:25:22 AM

    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!


Should CFPB have more supervision over credit agencies?