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Is the CFPB Changing?

Thu, Mar 19, 2015 at 3:00PM

Republicans are taking advantage of a majority in the House and Senate for the first time since the creation of the Consumer Financial Protection Bureau (CFPB). The result: several bills that could not only change the direction of the Bureau, but could also alter its reach and regulatory power.

Created as a result of the Dodd-Frank Financial Reform Act of 2010, the CFPB, under the direction of Richard Cordray, sees as its mission “to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.”

The CFPB has already had a significant impact on the home buying process, and has implemented additional regulations that will go into effect August 1 (the TILA-RESPA Integrated Mortgage Disclosures). Several Congressmen want to change the Bureau’s future ability to enact laws. Randy Neugebauer (R-Texas) introduced a bill that would replace the CFPB with a bipartisan, five-member commission to bring the CFPB in line with other financial regulatory agencies.

Rep. Sean Duffy (R-Wis.) introduced four bills that would change the bureau’s appropriations process for 2017 to allow Congress the ability to control its budget (which is currently under the jurisdiction of the Federal Reserve Board); change the pay rate for CFPB employees from the current Federal Reserve salary schedule to the general government pay schedule; allow the Financial Stability Oversight Council to set aside CFPB regulations by a majority vote rather than the current two-thirds vote; and require the CFPB to notify and obtain permission from consumers before collecting nonpublic personal information about them.

The final bills, introduced by Rep. Andy Barr (R-Ky.) and Rep. Ruben Hinojosa (D-Texas) would create a process for designating a rural or underserved area and to allow all loans held in portfolio to be designated as qualified mortgages.

The bills all have been assigned to the House Financial Services Committee.

Southern Title has been following the CFPB’s rules and regulations and will continue to keep you apprised of developments that will impact the real estate closing process.

Republicans are taking advantage of a majority in the House and Senate for the first time since the creation of the Consumer Financial Protection Bureau (CFPB). The result: several bills that could not only change the direction of the Bureau, but could also alter its reach and regulatory power.

Created as a result of the Dodd-Frank Financial Reform Act of 2010, the CFPB, under the direction of Richard Cordray, sees as its mission “to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.”

The CFPB has already had a significant impact on the home buying process, and has implemented additional regulations that will go into effect August 1 (the TILA-RESPA Integrated Mortgage Disclosures). Several Congressmen want to change the Bureau’s future ability to enact laws. Randy Neugebauer (R-Texas) introduced a bill that would replace the CFPB with a bipartisan, five-member commission to bring the CFPB in line with other financial regulatory agencies.

Rep. Sean Duffy (R-Wis.) introduced four bills that would change the bureau’s appropriations process for 2017 to allow Congress the ability to control its budget (which is currently under the jurisdiction of the Federal Reserve Board); change the pay rate for CFPB employees from the current Federal Reserve salary schedule to the general government pay schedule; allow the Financial Stability Oversight Council to set aside CFPB regulations by a majority vote rather than the current two-thirds vote; and require the CFPB to notify and obtain permission from consumers before collecting nonpublic personal information about them.

The final bills, introduced by Rep. Andy Barr (R-Ky.) and Rep. Ruben Hinojosa (D-Texas) would create a process for designating a rural or underserved area and to allow all loans held in portfolio to be designated as qualified mortgages.

The bills all have been assigned to the House Financial Services Committee.

Southern Title has been following the CFPB’s rules and regulations and will continue to keep you apprised of developments that will impact the real estate closing process.


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