Tuesday, June 7, 2011

The CFPB Monster is About to be Born

On July 21, 2011, the Consumer Finance Protection Bureau kicks into high gear, when it will take over regulatory control of certain sectors of the economy that are now overseen by seven other agencies.  It will take some power away from the (1) Federal Reserve, (2) FDIC, (3) Office of the Comptroller of the Currency, (4) Office of Thrift Supervision.(5) National Credit Union Administration, (6) FTC, and (7) HUD.  From telemarketing, mail order sales to fair credit practices to land registration to mortgage assistance relief, the CFPB will be in control. This is the agency that the regressive leaning, stubborn Elizabeth Warren wants to run.

Some of the powers that will be transferred to the CFPB are listed below (Note some of the sector powers may be limited, but not many):

From the Federal Reserve

Equal Credit Opportunity Act

Home Mortgage Disclosure

Registration of Residential Home Loan Originators

Consumer Leasing

Privacy of Financial Information

Fair Credit Reporting

Truth in Lending

Truth in Savings

From the Federal Deposit Insurance Corporation

Fair Credit Report

From the Officer of the Comptroller

Adjustable Rate Mortgages

From the Office of Thrift Supervision

Adjustments to Home Loans

Alternative Mortgage Transactions

From the National Credit Union Administration

Loans to members and lines of credit

Requirements for Insurance

From the Federal Trade Commission 

Telemarketing Sales Rules

Disclosure Requirements for Depositary Institutions not covered by the FDIC Insurance

Mortgage Assistance Relief Services

Rules for Cooling off periods for sales made at homes and certain other locations

Credit Practices

Mail or Telephone Order Merchandise

Disclosure requirements and prohibitions concerning franchises

Disclosure requirements and prohibitions concerning business opportunities

From the Department of Housing and Urban Development

Civil Money Penalties as applied to Real Estate settlement and Interstate Land sales

Land registration

Purchasers revocations, sales practices and standards

Real Estate settlement procedures


  1. And the good thing is, it only took them 3 years to put this all in place! Imagine if we had had another recession between then and now without the CFPB to protect us...

    We would've been dunzo.

  2. Bankers:'Let it be established. By and by, we will get one of our guys in charge of it then.... (shrugs)