More Stuff Happening At CFPB

Being Involved In Mortgage Loan Originator Education

I closely watch what is going on at the Consumer Financial Protection Bureau. It can affect my income and the income of sons, grandchildren, wife, staff, etc. The organization is about eight years old now, but changes they are acoming.

First, I have already many times relayed that the original Director Richard Cordray has resigned. President Donald Trump appointed Mick Mulvaney to the temporary position of Director while they are determining the person to nominate to Congress.

Mulvaney is also the Director of the office of management and budget. He has never been a friend of the Agency and has already made some moves.

Some Quotes From Mr. Mulvaney On April 3rd

(I want to thank a Duane Gomer Senior Instructor Howard Kirschner for alerting me to an article in Mortgage News Daily).

• CF is far too powerful and with precious little oversight of its activities.
• The Director could all too easily be used to harm consumers, destroy businesses, and arbitrarily remake American financial markets.
• Laws should be written to restrain that human weakness.
• The Bureau should be funded through Congressional appropriations not through the Federal Reserve.
• Bureau rules should require legislative approval.
• Director answers to the President.
• Create an independent Inspector General for the Bureau.
• A final rule on Arbitration Agreements will not go into effect (Congress disapproved)
• Postponed implementation of a Payday Loan Rule and is going to reconsider.

Guess that is enough changes for today. Will the Bureau that brought us Qualified Mortgages and Loan Estimate/Closing Disclosure and handled 317,200 complaints continue to exist? Time will tell.

Some MLO’s Think That The Testing And Education Requirements That They Now Have To Meet Are Part Of The CFPB

Not so, all the education requirements are part of the separate SAFE ACT (Safe and Fair Enforcement Act). I know that all MLO’s would like to see those rules disbanded. Obviously, I do not agree.

This Act Was A Late Early Retirement Gift To My Company

Will it continue? It is my opinion that the FDIC likes these rules. They do not have to comply, and it makes it more difficult for State Licensed MLO’s to qualify. Keeps competition down.

Do any of you believe that Banks and other Financial Institutions can be trusted to regulate themselves?