Against the CFPA
October 5, 2009 | federal legislation, industry | Comments (2)We missed this from the weekend:
Instead of stimulating responsible lending, banks may be held hostage by the Consumer Financial Protection Agency Act. Even for those entrepreneurs lucky enough to secure a loan under the new regime, the cost of borrowing would increase, according to information provided to the editorial board by the Chamber.
The new regulatory scheme would have unprecedented powers and authority to determine the types of financial products from which consumers can choose. In fact, the bill extends far beyond traditional financial service products to a vast majority of the economy – in short creating a new regulatory overlay over the entire business community.
As proposed, virtually every business is impacted. Settlement services providers, abstracters, attorneys, title insurers and potentially real estate appraisers, pest inspectors, surveyors and others who are part of a mortgage closing transaction are swept under the new agency.
Comments»
Does more government control and less consumer choice sound familiar? The CFPA is designed to regulate consumer financial products. We need to support effective consumer protection that ensures concise disclosures about risks associated. Visit http://www.friendsoftheuschamber.com/issues/index.cfm?ID=469
It is almost laughable for politicians to claim that they want to save consumers money by making financial contracts clearer. Statutes are so complex that consumers have to hire lawyers to understand what they mean, and the tax code is so complex we have to hire accountants.
What that shows is that lawmakers care less about saving consumers money than they do about finding targets to criticize and correct, so they seem to be doing a good job.