CFPB Proposal

Posted by kevin on September 22, 2014 under Foreclosure Blog | Comments are off for this article

The Consumer Financial Protection Bureau proposed to make all consumer complaints public, sorted out by lender and subject matter.

In a recent article (blog) by Ari Karen in National Mortgage News website, the author argued that this public forum could be used improperly by consumers, disgruntled employees and competitors. Moreover, the fact that a complaint is published could give it an air of legitimacy. Finally, the article contends that the lenders would have to spend money replying to these complaints.

The article does not point out that the proposal states that the body of the consumer complaint will not be published until 15 days after it is sent to lender.

The problem with the article is that it tries to paint a picture of a blameless lending sector that is being deluged with over-regulation. This ignores the simple fact that Dodd Frank and the CFPB came about because bank and investment company abuses in residential mortgages almost brought down our economy in 2008.