In 2010, Congress created the Consumer Financial Protection Bureau (CFPB) to serve as the nation’s cop on the beat to protect consumers from harmful financial products. Officially opened for business on July 22, 2011, the CFPB is now responsible for enforcing most federal financial consumer protection laws.
As a new federal agency, the CFPB is still working to define its approach to protecting consumers from abusive financial products and helping to ensure consumers have the right information to choose the financial products and services that will best meet their needs. While the CFPB’s authority extends from checking accounts to credit cards to payday loans, the Bureau also has significant authority over federal housing policy, mortgage lending standards, and the home buying process.
CAI’s members have a keen interest in the development of CFPB rules and regulations that could affect community associations. CAI is following CFPB actions on:
· Definition of qualified mortgage
· Regulation of transfer fees
· Association assessments
· Definition of real estate settlement fees
· Foreclosure prevention
· Mortgage servicing standards
More information can be found in CAI’s CFPB FAQ and by visiting the CFPB website at www.consumerfinance.gov.
CFPB FAQs
CAI activities to date:
CFPB Director Sets Agenda (1/2012) In his first remarks as CFPB Director, Richard Cordray announced the Bureau will begin to immediately exercise its supervisory authority over non-bank entities offering certain consumer financial products or services. Specifically, the Bureau will target mortgage originators, brokers, and servicers as well as entities offering mortgage modification or foreclosure avoidance services. Read more...
President Appoints Richard Cordray Director of CFPB (1/2012) President Obama has announced his intention to use a recess appointment to install former OH Attorney General Richard Cordray as the first director of the CFPB. The move to install Mr. Cordray through recess appointment is controversial and could negatively affect the establishment and future role of the Bureau.
Republicans have almost unanimously opposed the appointment of Mr. Cordray in an attempt to force changes to the structure of the CFPB. Republicans want statutory changes that will replace the leadership of the CFPB with a bipartisan board rather than an independent director. The Obama Administration is opposed to any change in the Bureau’s enabling statute. Read more...