Is The Consumer Financial Protection Bureau Out Of Control?

[Corey Dutton]

The ugly stepchild of Dodd Frank has no limits, according to a recent article posted by MPA Magazine. A Texas Representative, Jeb Hensarling, had this to say about the lack of accountability of the CFPB, “Arguably it is the single most powerful and least accountable Federal agency in the history of our nation.”

The CFPB was created in 2011 under Dodd Frank and it is an independent federal agency that holds primary responsibility for regulating consumer protection with regard to financial products and services. Unfortunately no one under the CFPB, including the omnipotent Director Richard Cordray, has any mortgage-related experience. Essentially this is just a “rogue agency” that’s creating and abolishing new mortgage and financial-related regulations with absolutely no experience in this area.

The CFPB has set out to eliminate mortgage products and services that were created for a reason. The reason is that there are borrowers out there that need them. Even the private money lending industry has been affected by the CFPB. The CFPB has made it impossible for anyone to obtain a private money loan on an owner occupied property. So if a consumer can’t qualify for a bank loan, now they can’t get a private money or hard money loan either!!! Why? Because the CFPB has made it so private money lenders won’t lend on owner occupied properties anymore.

Once again, too much government regulation, particularly by an agency with no mortgage background or experience, is bad, bad, bad. Let’s punish consumers for what the big banks and Wall Street did to them! Ridiculous. Read the entire article from MPA Mag here: http://www.mpamag.com/mortgage/cfpb-a-rogue-agency-with-no-accountability-16242.aspx