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CFPB and foreclosures

December 29, 2010 | CFPB, CFPB Nomination, Elizabeth Warren | Comments (1)

Elizabeth Warren says a CFPB would have prevented the foreclosure crisis.  In an oped that ran last week in the print edition of the Miami Herald but was only just picked up online, she says:

Lost in much of the back-and-forth over wrongful foreclosures is the question of whether the scandal could have been prevented. The answer is yes.

The practices now under investigation took root and grew because there was no single federal regulator with both the responsibility and the tools to look out for consumers.

Had it existed, the new consumer agency could have stopped these problems before they multiplied. Many of the failures already admitted were not sophisticated scams that had been carefully concealed. By enforcing existing laws and involving state authorities early on, the agency could have made sure that the law was respected. No one would need to wonder whether the world of borrowing and lending works only one way: Families have to follow the legal rules, but the rules are optional for big banks.


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Comments»

1. socialist slayer - December 29, 2010

Coulda, shoulda, woulda. If I only had a nickel every time I heard that at the craps table.

Speaking of Vegas. I bet E.W., given the power, would have prevented me from blowing a few hundred at the craps table on my last trip. Just what we all need: an additional mother.