Friday, May 6, 2011

Senate Republicans Stall on CFPB Director

Watch carefully, as vested interests struggle to preserve the status quo:


"A group of 44 Republican senators sent a letter to President Obama Thursday vowing not to confirm any nominee for director of the Consumer Financial Protection Bureau until structural changes are made.

"The CFPB was created under the Dodd-Frank Act and is scheduled to open July 21. It will become the main regulator for the mortgage industry and will oversee how loans are written and sold to consumers. But, nearly two months out, there is still no director. Republicans in both the House of Representatives and Senate want to restrict the bureau and establish more checks and balances before it gets underway.

"...the White House said the CFPB will be vital to catching lending abuses in the future, according to a statement sent to HousingWire Thursday.

"'For far too long, American consumers have fallen victim to fraud, misleading claims, and powerful special interests and the President believes that American families who were the hardest hit by this financial crisis deserve an independent watchdog to protect consumers and prevent predatory lending and other abuses in the future.'

"The Dodd-Frank Act requires that the CFPB to submit annual financial reports to Congress, twice each year to justify its budget from the previous year. And the director is required to testify before and report to Congress twice each year regarding the CFPB’s activities.

"The Government Accountability Office will conduct an audit each year on the bureau’s expenditures and submits a report to Congress. And the CFPB must submit its financial operating plans, forecasts and quarterly financial reports to the Office of Management and Budget.

"A separate council of federal regulators, called the Financial Oversight Stability Council, can overrule the CFPB with a vote as well, Warren has pointed out.

"...Warren took it a step further and accused lawmakers of merely trying to delay and defund the agency before it even gets started, and that they are ignoring how quickly financial threats to consumers can emerge."


[Ed. Appraisers who are irate about how their profession has been ruined by unscrupulous banks should be showering these self-interested politicians with a blizzard of protest letters, emails and phone calls.]

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