American Banker reported earlier this week that the CFPB has hired Christopher C. Haspel away from the Government National Mortgage Association, otherwise known as Ginnie Mae. According to a source, CFPB will be giving him a top slot at the new agency.

At press time it was unclear what his role at the consumer bureau will be. A GNMA spokeswoman had not returned telephone calls and emails.

As director of the monitoring division at Ginnie Mae, Haspel oversaw servicing and securitization. During his four-decade career in financial services he has worked at companies such as BlackRock Inc., General Electric Co., Capital One Financial Corp. and Fannie Mae.

Senator Richard Shelby, the leading Republican on banking issues, has finally thrown support to one of the White House’s nominees in government agency leadership. In recent months, Shelby’s opposition helped sink the nominations of Peter Diamond to be a governor of the Federal Reserve Board and Joseph Smith to be director of the Federal Housing Finance Agency. But now he’s singing a different tune with the FDIC.

“I believe he is a credible, honest man and I look forward to supporting him,” Shelby told Reuters in an interview about Martin Gruenberg.

The Consumer Financial Protection Bureau opens next month. The new federal agency was created in the wake of the financial crisis, and it’s charged with creating and enforcing consumer financial protection laws. Even before the agency starts operating, there is a great deal of controversy about its reach. Host Michel Martin discusses the CFPB and how it will change things for consumers with NPR business reporter Tamara Keith and Money Coach Alvin Hall.

Southern California Public Radio featured an episode with Patt Morrison that had a couple of financial services industry insiders as guests. The topic du jour: Who will run the CFPB?

Stan Collender, budget expert and partner at Qorvis Communications (a corporate communication consulting firm); has worked on the House and Senate Budget Committees and edited Federal Budget Report, a newsletter that was published for almost two decades

Scott Talbott, senior vice president for government affairs, The Financial Services Roundtable

To listen to the show, click here.

Nearly 10 percent of Virginia households have used short-term credit in the form of payday, pawnshop, and auto-title loans.

A study by the University of Virginia’s Weldon Cooper Center for Public Service released Tuesday shows that more than 275,000 financially struggling families in Virginia have turned to alternative financial-service providers to pay for basic needs such as food, housing and transportation. They also are using the high-cost loans to pay for unexpected expenses stemming from job losses, car repairs and medical bills.

…

Nearly 120,000 Virginia households — 4 percent — used payday loans, according to the study, which analyzed 2009 national banking statistics from the Federal Deposit Insurance Corporation.

Personal finance story came out of the Sacramento Bee lamenting the criticism we always receive: High-cost, triple digit APR.

The payday loan industry … says they’re a lifesaver for cash-strapped individuals, especially in a choppy economy.

And we say, so what? Millions of customers across the country have used payday advances responsibly and appreciate having somewhere to turn when they need quick access to credit. Analysts estimate payday advances are used by 19 million American households.

The article also discussed a bill that would raise the limits on payday loans – from $300 to $500 – passing the state Assembly.

There are a couple things we want to keep in mind when it comes to restricting access to credit: Loan limits punish borrowers who have proven they can meet their financial obligations and discriminates against those who don’t have access to a wide range of financial options. Research shows that heavy-handed restrictions on payday loans have caused consumers to bounce more checks, pay more late fees, and experience more credit problems.

Fake debt collector scams on payday loans have been making their way into the lives of consumers across the country. If you have a loan with a CFSA member, we want to make sure you remember Best Practice #7:

A member must collect past due accounts in a professional, fair, and lawful manner. A member will not use unlawful threats, intimidation, or harassment to collect accounts. CFSA believes that the collection limitations contained in the Fair Debt Collection Practices Act (FDCPA) should guide a member’s practice in this area.

“It is simply wrong to pursue criminal complaints against consumers who have defaulted on personal debt,” said D. Lynn DeVault, board chair of the CFSA. “Lenders should be working with their customers to figure out a solution. Our members offer borrowers an extended payment plan at no extra cost to the borrower and adhere to CFSA Best Practices which prohibit any criminal recourse.”

Dems and Republicans have been fighting hand-over-fist re: the confirmation of Elizabeth Warren as the CFPB director. And now, it seems, the battle has moved to Raj Date–the new candidate being floated around.

Rob Blackwell for American Banker:

For starters, I don’t think liberals will be pleased if anyone but Warren gets the job, even if she gives Date her blessing. And perhaps more important, it is doubtful Republicans will suddenly embrace Date. The Senate GOP has vowed to oppose anyone — anyone — Obama nominates unless he agrees to structural changes at the agency. Does anyone believe that if Date were nominated, the Republicans would suddenly withdraw their objections and approve him?

The White House won’t say what it’s up to. The only explanation that would make sense to me is that the White House decided to encourage Warren to run for Senate in Massachusetts against Scott Brown. Such a move would at least pacify her liberal supporters, who want to see Warren head the agency on a formal basis. But polls show she would start a hypothetical campaign trailing Brown by about 14 points. Not very encouraging for her.

CFPB is at a “virtual halt” and the GOP are close to calling it a victory, or so says this Washington Post article.

The stalemate has lasted so long that it would be virtually impossible for the Senate to vet any candidate before the agency opens for business July 21, even if a compromise could be reached. The White House could make a recess appointment during the Independence Day holiday, but Republicans have promised to keep the Senate in session. The CFPB has said it will be ready to start work on the launch date, even if it has no leader and sharply curtailed authority.

One tiny little inaccuracy in the article that we wanted to clarify:

The industry also chafed at the prospect of payday lenders, check-cashers and other financial firms flying under the radar of the new agency unless a director is named, while banks will still be subject to the CFPB under existing regulations.

Not all payday lenders are unregulated. Since the 1990s, states have steadily gained expertise in regulating the payday advance industry. That knowledge has led to broad discretionary power for state regulators to impose new licensing requirements, interpret or enforce existing regulatory requirements in different ways, and issue new administrative rules.

CFSA members are regulated by state law.  State regulations are meant to ensure that the payday advance remains a responsible, small dollar, short-term loan product.

Payday lenders not a focus in Ohio, more like Peggy Landers, according to this Columbus Biz Insider. So where is the focus? One word: Budget.

Keep watch, as we want to make sure we don’t limit access to credit in Ohio. Consumers deserve the stability of a competitive marketplace that includes banks, payday advance lenders, installment lenders, and other services such as bill pay. Neighborhood financial services centers can provide access to a broad scope of services so the consumer chooses the right service for the situation and never has to borrow more than needed, for longer terms than are needed, or pay more than is necessary.