We’re ya been?
July 31, 2009 | alternatives, federal legislation, industry | Comments (0)This paper is catching up to the fact that there is a fight over the Consumer Finance Protection Agency:
The CFPA would write the user-safety rules for virtually all consumer financial products, and would have the legal firepower to levy huge fines – tens of thousands of dollars a day per violation in some cases – and prosecute lenders, brokers and others who break the rules.
The agency would be the dominant federal consumer protector in all home real estate settlements. It would regulate “affiliated” title, escrow and financing businesses connected with realty firms and builders. It would oversee equal credit opportunity and fair housing, and would set standards for all mortgage offerings, whether from the biggest national banks or the smallest local brokers. Generally it wouldn’t seek outright bans on mortgage products that carry elevated risks – interest-only loans, for instance – but would require that lenders restrict such mortgages to well-informed applicants who can document that they understand the risks and afford the payments.
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