Readers respond: Is the CFPB hurting the economy?

by MPA12 Apr 2014
A House Financial Services Committee meeting this weeek investigated whether the actions of the Consumer Financial Protection Bureau and other government regulators were harming the economy. MPA readers had some very definite ideas about the CFPB's effect.

"The CFPB is really hurting the mortgage industry, big time," said reader Tom Jones. "...It ends up hurting the very people they are trying to protect."

"The actions of the CFPB have demonstrably hurt the economy in at least two major ways," reader George agreed. "First, their regulations have cost business immeasurable hours of time, effort and legal fees in order to comply with superfluous disclosures. Second, their actions pursuant to Dodd Frank and compensation to date have worked to eliminate competition. A further result is the reduction of available competitive finance in low economic neighborhoods."

But reader Mary pointed out that the CFPB, however flawed, was created to address a real problem.

"The whole mortgage industry learned an expensive lesson," she said. "This over regulation which by the way, I agree, is choking the life out of our industry, is the extreme reaction to the lack of self regulation."

What do you think? Let us know in the comments below.


Should CFPB have more supervision over credit agencies?