Saturday, August 06, 2011

Two articles on the CFPB caught my attention this week...

and since neither permit comments on their sites, I'll comment here.

The first is an article on Housing Wire.  Here's a blurb:

"Elizabeth believes in markets and in capitalism, but lying, cheating and stealing are not capitalist virtues. Honesty and trust are necessary conditions for a functioning market, and Elizabeth understands that," Fried told HousingWire. "It's obvious. Those who made fortunes lying, cheating and stealing and by dealing in the merchandise the dishonest generated resented having their game shut down. Securitizing and selling fraudulently procured mortgages is just sophisticated fencing."

I only had to listen to Ms. Warren's answer to Charlie Rose concerning TARP to get that she wasn't a progressive big government gal.  I like everything I've read about her and consider it a complete shame that politicians treated her like a pariah.  I hope she successfully runs for the Senate.  In my opinion, she's of the rare breed of statesmen that we so need at the helm of government.

The other article I find interesting is in Reason.  Here's a blurb:

If you were to put the CFPB proposed ruling and a credit card agreement side by side and removed the titles at the top, it would be hard to differentiate between them. The CFPB wants the average consumer to be able to read forms they receive from banks, but not proposed CFPB rulings and regulations. That's not exactly transparent or fair and is a little ironic. 

I agree and this has been on my mind since I read the interim rule published recently by CFPB.  I'm pretty good at reading regulations.  I may not be perfect in my initial interpretations but I can slug my way through and after consulting with others who have done the same, grasp with a fairly solid understanding what to do and how to do it.  When I read the interim rule, I longed for the more simplistic language HUD had embraced in their last major RESPA overhaul.  HUD staff, in my opinion, made a valiant attempt to use language that would be easy to understand.  Even so, folks still have misunderstandings, but at least the starting point was fairly clear.  I have to say that reading the CFPB interim rule made me tired and I'm not sure how many times I would have had to read it to gain clarity but it shouldn't be that hard.  There are ways to say what you've got to say without making it so darn tough.  CFPB needs to lead the financial industry by example.  I have high hopes for CFPB and hope they are open to this type of constructive criticism.  ;)

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