Daily Market Update: Obama says creating CFPB wasn’t intentional

by MPA01 Apr 2015
Obama says creating CFPB wasn’t intentional

In a heartfelt speech to the mortgage industry, U.S. President Barack Obama admitted that the Consumer Financial Protection Bureau (CFPB), which he created in the aftermath of the financial crisis, has gone too far.

“It was intended to punish the bad guys, but instead it has punished the good ones,” Obama said. “It has spiraled out of control. When I helped create it and Dodd Frank, it was for a bet. I didn't know it would have gone this far. Now, no one can buy a home."

Obama went on to admit his biggest regret was letting his daughter, 16-year-old Malia Obama, draft portions of the Dodd Frank Act as part of a homework assignment for her Advanced Placement U.S. Government course.

He added that he plans to establish a better relationship with the mortgage industry and hopes everyone can “hug it out.”

Orange Mortgage replaces mortgage officers with robots

Times are changing. Websites like Lenda have already pledged to eliminate the loan officer role, while Bank of America plans to use video mortgage bankers. Now, San Francisco-based Orange Mortgage will use robots to replace mortgage originators.

“It costs money to pay commissions to loan officers,” Steve Wobs, CEO of the Orange County-based mortgage company, said. “We’re building machines that remove a lot of that stuff so when people come to us, they actually stay because they don’t have to talk to a loan officer. I mean who does?"

In June, Orange Mortgage will begin replacing its mortgage officers with robots in its Southern California branches and then across the West Coast. The cost of a loan officer accounts for 50-100 basis points of a loan’s amount, so by removing the loan officer, Orange Mortgage said it reduces the cost for applicants.
Richard Cordray confirms Jack McBrayer relation
Are they or aren’t they? We’ve all been wondering and Consumer Financial Protection Bureau (CFPB) Director Richard Cordray has set the record straight about he and 30 Rock star Jack McBrayer.

In an interview with XYZ News, Cordray not only confirmed the relation, but revealed he and McBrayer are twins separated at birth. “I had never watched 30 Rock until a coworker approached me and pointed out the similarities,” he said. “I watched it immediately and decided to reach out to McBrayer.”

Although they share a lot of physical attributes, the pair couldn’t be more different. While Cordray aggressively tackles financial reform, McBrayer is best known for his role as mild-mannered NBC page Kenneth Parcell on 30 Rock.

Corday said the two meet for a picnic every Sunday to discuss financial reform and their mutual love and respect for Tina Fey.

Editor’s Note: Mortgage Professional America would like to thank its team of fun-loving reporters for this April Fools' Day Special Report. Happy April Fool’s Day to all our readers!


Should CFPB have more supervision over credit agencies?