What does the Consumer Financial Protection Bureau (CFPB) really want for the holidays? Isn’t it time that Santa handed the CFPB a director? Without a director, there aren’t enough bullets in the CFPB’s gun to begin to clean up the real estate industry.
It’s now been nearly five months since the creation of the CFPB with its directive to take the reins of RESPA violation enforcement from HUD. But the agency is stalled with the lack of an agency director.
Until a director is approved by the Senate, the CFPB can only enforce existing consumer regulations but not conduct oversight of the so-called “non-bank” financial institutions such as mortgage lenders that were responsible for many of the practices leading up to the financial crisis.
To be fair, it’s not as though President Obama isn’t trying. His top choice, Richard Cordray, was approved by the Senate Banking Committee and backed by Treasury Secretary Tim Geithner. However, Republican senators have blocked the appointment, not even letting it get to a vote because they disagree with the powers the CFPB have been given.
The CFPB’s mission is to make consumer financial products and services work for average Americans. Part of that mission is to ensure that consumers are provided with helpful information about the cost of their mortgage settlement and protected from unnecessarily high settlement charges caused by abusive real estate industry practices. That’s where RESPA comes in.
But five months in, and they still don’t have a director – but they do have limited power and direction. As it stands now, the CFPB has really no way to penalize or take corrective actions against wrong-doers.
How long will we have to wait? The holidays are coming. When will Santa arrive at the CFPB?
This Christmas, instead of sending a letter to Santa, send a note to your senator asking them to give the CFPB a director. Click here to find your senator and contact them directly.
Let’s show our representatives how important this issue is – here is a short letter that you can forward on to your senator.
As a proud member of the real estate industry, I eagerly anticipated what reform would come upon the inception of the Consumer Financial Protection Bureau (CFPB). But since the watchdog agency was handed the reigns to investigate RESPA violations in July of this year, I’ve been disappointed in the results. The most important thing you can do now is to install a director of the CFPB who will begin to serve the purpose that the agency was founded to serve. Please help to right this wrong and set a vote to confirm Richard Cordray as the Director of the CFPB. All real estate agents (and your constituents) are waiting for this.