Is the CFPB Working?
Many are questioning the effectiveness of the CFPB (Consumer Financial Protection Bureau) and if it belongs in the housing industry at all.
Recently, Senator Ted Cruz, R-Texas, introduced a bill to abolish the CFPB as it is his belief that the department is doing more harm than good to our economy and the industry. The bill highlights the ideas that the CFPB actually stunts consumers and small businesses from succeeding due to the financial rules and laws now in place. CFPB’s harsh regulations have forced many smaller institutions to close and essentially hand over business to the big banks.
Arguments on the other side claim the CFPB is responsible for helping dig the housing market out of its rut at a faster and more efficient pace than would otherwise have been achieved.
The bill has been introduced to Congress and will reviewed by the appropriate committee who will then decide whether or not the bill should be moved forward to the floor of the House or Senate for debate.