In case you haven’t heard, there are some changes going on down at the CFPB. The new Administration is trying to foster a more business-friendly atmosphere while maintaining the CFPB’s mission of consumer protection. Can it be done? Only time will tell.
The conversation, or should I say debate, has begun. With Mulvaney now as Acting Director, moves are being made to ease some regulation while softening the CFPB’s approach to enforcement.
Many say they are much too harsh while others believe more needs to be done. Fear is that things will go back to the old ‘Wild West’ of lending. How it was before Cordray and his team of regulators took over the enforce Dodd-Frank. What do you think?
I believe lenders learned or were reminded of some very important lessons. The consumer is the foundation of business and the economy. They must be treated fairly. Otherwise, the system collapses.
On the other hand, a business must be allowed to operate freely, within reason, without undue restrictions or overly oppressive regulations, to properly service the needs of consumers, investors, each other, and the economy. It shouldn’t be that hard to do both.
Think about it. Did lenders really need a law to force them to determine a borrower’s ability to repay a debt and specifically how to go about doing it? What lender would lend money to someone who couldn’t repay? Seems like a dumb question, but unfortunately some did.
Since Dodd-Frank passed, the CFPB has been telling lenders how to conduct their business. Here’s an opportunity for lenders to provide feedback and recommendations to the ‘new’ CFPB on how the CFPB should conduct theirs!
CFPB issued a notice for comment on their current process for conducting Civil Investigative Demands (CIDs). On occasion, CFPB issues these CIDs to help them obtain information to further their review of potential violations of Federal consumer protection laws.
Response to these requests for information and documentation can get quite time-consuming and costly for any lender receiving the request. The Bureau is now asking for the industry’s help in providing specific feedback (short of discontinuance) on the best way to administer this process.
CFPB wants to know what’s good about the present process, specific aspects that should remain as is, and those areas that lenders believe need to change. Here’s your chance to speak up, especially if you are a lender that has gone through this CID process.
You can view and get more info on the CFPB request for comment HERE. Don’t let this opportunity pass. Have your voice heard!
Consumers need protection from unscrupulous lenders, but good lenders need protection from over-burdensome regulations. Here’s your chance to speak to both.