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CFED, Others Decry Possible Fate of the CFPB: What Will Trump Do?

December 8th, 2016 Comments off
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President Barack Obama announces the nomination of Richard Cordray as the first director of the CFPB on July 18, 2011. Credit: Wikipedia.

Since the Dodd-Frank Wall Street Reform Act was enacted six years ago, members of Congress have attacked the law, including the Consumer Financial Protection Bureau (CFPB), tirelessly” states a letter from CFED sent this morning (see attachment download, near the end of this post, below). “…the next Congress and Administration are likely to work closely together to attack Dodd-Frank and the CFPB. There is a real danger that moderate Democrats will even join Republicans to undermine these protections.”

As the days count down to President-elect Donald Trump’s inauguration, the saga of the Consumer Finance Protection Bureau (CFPB) continues to play out.

What the CFED letter fails to mention is to their supporters is that the CFPB provided funding to CFED.

Even when it was documented that the CFPB regulations were harmful to manufactured home owners and buyers, CFED continued to support the CFPB, and attacked all who would modify their regulations.

Even when video of Richard Cordray, the CFPB director himself saying there was very little predatory lending in manufactured housing, CFED and their allies continued to attack any who suggest any change at all to the regulations.

Now, The Great Battle over the CFPB is Looming

American Banker columnist John Heltman writes “The political independence of the Consumer Financial Protection Bureau may end not with a bang — after a protracted battle in Congress — but with a whimper, the victim of a bureaucratic rule that prevents the agency from appealing a pending court case to the Supreme Court.

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John Heltman. Credit: Twitter.

A recent ruling by the D.C. Circuit in the PHH case in October, which the Daily Business News covered here, determined that the single-director structure of the CFPB was incompatible with its status as an independent federal agency, and that director Richard Cordray would have to serve at the pleasure of the president to avoid violating the Constitution’s separation of powers.

This is unprecedented, and there are a lot of people who are confused and I think a lot of speculation about what’s going to happen,” said Thaya Brook Knight, associate director of financial regulation studies at the Cato Institute.

While the CFPB is appealing the decision, their ability to get the ruling overturned may actually hinge on whether or not the Justice Department will allow the case to move forward.

With Donald Trump taking office, and Senator Jeff Sessions being nominated for Attorney General, that could be tricky for fans of the CFPB.

But, there’s more.

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President-elect Donald Trump and Senator Jeff Sessions. Credit: Alabama Today.

A big challenge for the agency is Title X of the Dodd-Frank Act, which established the CFPB. The title gives the agency explicit authority to pursue its own litigation up to and including the Circuit Court level, but when it comes to the Supreme Court, the law says the CFPB must first file a written request to the U.S. Attorney General within a specified timeframe and that the “Attorney General concurs with such request or fails to take action within 60 days of the request.

In essence, Donald Trump and Jeff Sessions could “run out the clock” by taking no action, effectively blocking the CFPB’s appeal to the Supreme Court.

Heltman writes that this scenario leaves CFPB with relatively few options to prevail in their case with PHH.

The agency has requested an en banc (full court) rehearing of the matter before all sitting justices on the D.C Circuit. If either that request for rehearing is denied or is granted or the panel upholds the earlier ruling, the Justice Department could prevent the CFPB from appealing the case further.

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Richard Cordray. Credit: Wikicommons.

Even though President-elect Trump has not taken office, one former Treasury official believes that he would stop the CFPB in its tracks.

I assume that one of the first orders of business of a Trump Justice Department will be to end that appeal and effectively confess judgment, say ‘Yes, it was unconstitutional,’ and then fire [CFPB Director Richard] Cordray,” the former Treasury official said.

I’ve never seen a case where the eagle was on both sides of the case. That would actually sort of be proof that the ruling was right, wouldn’t it?

Another possible scenario is that President-elect Trump could remove Cordray from his role.

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Mark Calabria. Credit: Cato Institute.

According to AMI Newswire, Mark Calabria, the director of financial regulation studies at the Cato Institute in Washington, D.C., sees a strong case for Trump removing Cordray right after he assumes the presidency, based on the language in the Dodd-Frank Act and the director’s administrative record.

The first thing that can be done is replacing the director,” said Calabria.

Eventually a commission might take over, but it’s highly unlikely that would happen next year. Expect Congress to eventually limit the agency’s powers to take action against financial institutions for ‘abusive’ practices.

As noted above, the bureau also has its supporters and detractors.

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Dennis Kelleher. Credit: Better Markets.

In just a few years since it was created, it has returned more than $11 billion to more than 27 million Americans ripped off by financial firms,” said Dennis Kelleher, President of Better Markets a Wall Street watchdog. “After more than a decade of being victimized by financial predators, that is great news for America’s financial consumers.

The bureau is immune from traditional congressional oversight and is at odds with America’s democratic principles,” said Senator James Lankford (R-Okla.) last week in a report detailing wasteful spending by the federal government.

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Senator James Lankford. Credit: Twitter.

Almost everything the CFPB does is redundant to another federal agency. It should never have been created. The best use of funds would be to abolish the CFPB and spend the available dollars to reform and appropriately staff the other regulatory entities.

The manufactured housing industry’s professionals have strong feelings about the agency and its impact. The Daily Business News will continue to monitor the moves to reform or entirely repeal Dodd-Frank and the CFPB, and those who strive to defend it.  ##

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To see their letter, click the link below or the image above. CFED’s logo is their property, and is used here under fair use guidelines.

(CFED letter to supporters on the CFPB referenced above is available as a download, linked here.)

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Dodd-Frank: Clintons, Buffett, Trump and What it all Means

December 5th, 2016 Comments off
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President Obama signs Dodd-Frank into law. Credit: The White House.

With President-elect Donald Trump set to take office in a few weeks, one of the issues front and center is Dodd-Frank and what will happen to the legislation, which Senators Elizabeth Warren (D. MA.) and Bernie Sanders (I. VT.) have vowed to defend.

The issues, opinions, perspectives and points of reference abound.

Patrick J. Richard provided his take in American Banker, making the case that dumping Dodd-Frank could restore executive accountability to the financial sector.

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Patrick Richard. Credit: American Banker.

Absent from the debate over rolling back Dodd-Frank,” wrote Richard, “is recognition of how a regulatory recalibration – restoring balance between risk and rules – would also restore more personal responsibility on the part of financiers.

Richard used Warren Buffet and Berkshire Hathaway as an example of risk/rule balance in action, including Buffet’s line from his 2004 annual letter to shareholders that said “After all, who ever washes a rental car?

The ‘rental car’ in the oft-used expression could be a metaphor for the current financial services industry,” wrote Richard. “It has been so influenced by government regulation since the crisis that executives and boards of directors perhaps feel less ownership and accountability for its performance. Good governance recognizes that executives should treat the bank’s investments at least as carefully as their own money – or car.

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Parady of CFPB logo – credit, Plus 1 Properties. Cartoon collage credit, MHProNews.

Buffett referred to the importance of aligning executive and director incentives with shareholder interests in his 2004 letter.  In it, he made clear that all Berkshire Hathaway directors purchased their holdings in the markets just as normal shareholders did and that Berkshire Hathaway does not carry Directors & Officers liability insurance.

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Warren Buffett, President Obama, credit – Motely Fool.

Buffett’s approach here is simple but far-reaching,” wrote Richard. “Directors and officers put ‘skin in the game’ and hold the same economic upside and downside as shareholders. They also face personal liability and full accountability for the legal ramifications of any misdeeds. Directors and officers do the right thing in part because it is in their personal interest to do so.

Richard also shared how this equation is more complicated for banks, as they treat shareholders and depositors as key stakeholders, even though their interests can be at odds. In part, this ties into the “why we need it” narrative of Dodd-Frank regulation. 

In reaction to the financial crisis, Dodd-Frank produced a blizzard of regulations to proscribe a litany of behaviors. But this approach has proven costly, complicated, stifling to innovation and susceptible to gaming,” wrote Richard. “Worse, it may have actually undermined executive accountability: The CEO in effect becomes a compliance manager rather than driver of key business decisions, often left to rely on the secondary assurances from risk managers and other mid-level managers.

Richard sums up his take by stating that massive regulation offers the opposite of the Warren Buffett approach. “By creating a system of highly detailed regulations that no CEO or board could recite, let alone master, Dodd-Frank and other regulatory schemes empower specialists, lawyers and bureaucrats,” wrote Richard.

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Hilary Clinton. Credit: AP. 

Understanding the Clinton Connection

A recent editorial from Investor’s Business Daily (IBD) highlights comments from Hillary Clinton at a September Presidential debate, and shows how the Clinton Administration – not the tax cuts during the Bush 43 Administration – set the stage for Dodd-Frank.

In 1995, using the powers of the presidency, Bill Clinton turned the 1977 Community Reinvestment Act into an aggressive program that basically forced banks to lend money to ‘underserved’ communities,” the article said.

Credit: IBD.

Credit: IBD.

That meant those with low incomes who couldn’t necessarily repay a loan.

This is where The Department for Housing and Urban Development (HUD) comes in.

Under HUD Secretary Andrew Cuomo, the agency became particularly aggressive, in 2000 making a goal of over $1 trillion in new loans to low-income minority households,” the article said. Fannie Mae and Freddie Mac were told to make at least half of their loans to low- and moderate-income borrowers, mainly minorities.

Banks suddenly found that regulators had the power to refuse their branch expansions or reject a merger if they weren’t making enough loans to otherwise unqualified minority borrowers. So they played along.

They made the loans, and Freddie and Fannie bought the loans right back. It was like a game of musical chairs, and the Fed kept the game going in the early 2000s by cutting interest rates. Every time Republicans in Congress or President Bush talked about reforming housing programs, Democrats like Rep. Barney Frank of Massachusetts and Sen. Chris Dodd of Connecticut threw fits, threatening to gum up Congress and implying that GOP lawmakers were racists. The Republicans backed off.

And the connection is made.

Tax cuts had nothing to do with this whatsoever. Nor did the minor tinkering to the 1930s-era Glass-Steagall law in 1999, which was implicated in none of the major Wall Street insolvencies or subsequent bailouts during the crisis,” the article said.

It’s another die-hard Democratic myth,” IBD stated, “intended to absolve themselves of blame for the crisis. And the economy-killing Dodd-Frank financial regulations passed in 2010 were based on these Democratic myths — which is why we’re now having the worst economic expansion in modern history.

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Credit: Wikipedia, CFPB, HubPages.

MH Connections

Among the overlooked causes for the big slide of manufactured housing from the 372,000+ shipments hit in 1998 to the low ebb of the mid-to-late 2000s was loose lending standards of conventional housing lenders.  Buyers that once would have turned to manufactured homes for their housing, instead used so called “no doc” “liar loans” that boosted conventional housing at the expense of manufactured and modular home production.

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The initial nose-dive of manufactured housing that came after 1998 was due to a large volume of repossessions from poorly underwritten loans.  But the next bite out of the industry’s proverbial apple was equally poor – and far costlier to the U.S. economy and millions of conventional housing owners – loans made on houses that were too risky, and failed. Graphic image credit, Patrick.

As Daily Business News readers are aware, we have followed Dodd-Frank, the Consumer Finance Protection Bureau (CFPB) and its effect on the MH industry closely, including both being in the Trump Administration crosshairs, the CFPB being ruled unconstitutional, and who the Feds and the CFPB are working for on a practical level.

paulbradleycredtimhpronewsstanthonycasehighlightsbattleovercommunityownersrightsvsresidentsrights-dailybusinessnewsThe issue brings a common divide.  Paul Bradley stated his concerns about bringing Dodd-Frank to an end in a new article, linked here, concerned that ending those standards could mean a return to “predatory lending.”

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Manufactured homes ready for shipment. Image credit – Wikipedia.

On the other side are those – such as award-winning retailer, Alan Amy – who told Inside MH that he believes that CFPB regulations are costing around 30% to 35% more sales of manufactured homes a year. If Amy is correct, that would mean some 25,000 (+/-) new manufactured homes a year. So this issue is front and center for manufactured housing professionals.

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Award winning manufactured home retailer Alan Amy estimated in the video linked above that Dodd-Frank is costing the MH industry – and prospective home buyers – 30% + more sales every year. Credits – Inside MH – MHLivingNews – Sunshine Homes and ManufacturedHomes.com.

We will continue to follow developments regarding Dodd-Frank and the CFPB closely as they unfold. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

CFPB Director Richard Cordray Targeted in Ads

June 22nd, 2016 Comments off

richard_cordray__abc_news_creditThe head of the Consumer Financial Protection Bureau (CFPB) is now the target of television ads that allege Dir. Richard Cordray is going to run for governor of Ohio, and that the CFPB is seeking to limit arbitration clauses, which is seen as beneficial to plaintiff attorneys.

MHProNews has learned from American Banker that the ads “appear to be the work of Lincoln Strategy Group,” an Arizona political strategy group that has been sending operatives to trail Cordray, and which has been linked to Mitt Romney’s campaign and other Republican honchos.

American Banker further states that Lincoln executives show up at CFPB events and ask politically-pointed questions, reports pymnts. A group called Protect America’s Consumers has also taken out ads targeting the CFPB.

Other ads depict complaints of discrimination against female and minority staffers, and that the remodeling of CFB headquarters has cost more than a Las Vegas casino.

Cordray, whose term ends in 2018, has not publicly stated he intends to run for governor of Ohio. ##

(Photo credit: ABC News–Richard Cordray)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Doug Ryan: Expand the Lending Opportunities for MH Buyers

February 23rd, 2016 Comments off

manuf home royal homes of raleigh nc creditManufactured housing (MH) is an inexpensive path to the American Dream of homeownership, said Doug Ryan, Director of Affordable Homeownership at the Corporation for Enterprise Development (CFED).  But he claims there is a lack of competition among the few MH lenders that exist—a market dominated by Clayton Homes, which builds, markets – and through related firms – finances MH.  Thus it does not have to rely on a secondary market.  According to Ryan, that vertically integrated operation makes the path to more ownership of quality affordable manufactured homes more difficult.

In an op-ed in American Banker, Time to End the Monopoly over Manufactured Housing, Ryan says the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac should participate more in buying chattel loans. That might happen, due to a proposal from the Federal Housing Finance Agency (FHFA) that the GSEs would get credit for “duty to serve” underserved housing markets, like making loans to MH secured by real estate.

While not including chattel or “personal property” (home only) loans, the proposal advocated by CFED and others includes a move that encourages states to change their titling laws to recognize MH as real estate. If titling reform did go through, they claim, it would open the field up to more lenders, and present more competition for Clayton and their affiliated lenders.  

The move to magically dub “home only” loans as “real estate” is opposed by MH lenders and by third party MH financing experts, such as Marty Lavin, JD, because it is too costly and burdensome for lenders in practice.  Lavin and others assert that would drive out more manufactured home lending, rather than create more of it.

While Freddie Mac has recently made loans to acquire manufactured home communities (MHCs), as MHProNews  has previously reported, an additional part of the proposal would require the largest GSE mortgage companies to finance the purchase of MHs as chattel loans, which Ryan says would begin the development of a secondary mortgage market for MH.

Ryan said Clayton finances homes through lenders owned by parent company Berkshire Hathaway, and has no need for Fannie and Freddie. Ryan claims the industry’s largest national trade association, the Manufactured Housing Institute (MHI), and Clayton both oppose the inclusion of chattel loans in the rule.  This, asserts Ryan, prevents owners of manufactured homes on leased land from building equity.

What Ryan fails to mention is that MHI and the Manufactured Housing Association for Regulatory Reform (MHARR) are both working to get chattel lending included by FHFA’s Duty to Serve (DTS) instructions to the GSEs. CFED’s point man on manufactured housing also fails to mention that his organization has admitted to what is a conflict of interest on issues relating to the CFPB and MH lending.

Ryan also fails to mention that federal regulations have driven out personal property lending that previously existed for manufactured homes, so the very policies CFED advocates for would actually make MH lending even tougher.

Clayton Homes/Berkshire Hathaway have been hammered repeatedly by slanted and misleading by theSeattle Times/BuzzFeed  advocacy journalism “reports” charging discrimination, predatory lending, exploiting and even “threatening” borrowers.  Ryan and his allies – such as Ishbel Dicken’s led National Manufactured Home Owners of America (NMHOA) – have promoted such negative media, in an effort to undermine the progress made on passage of the Preserving Access to Manufactured Housing Act (HR 650/S 682).

MHLivingNews  has outlined many of the issues relating to mistaken points made by Doug Ryan and others in a video and related article, found here. The video quotes CFPB’s Richard Cordray, HUD’s Julian Castro and Senator Bob Corker speaking on MH as an affordable housing solution, highlighting facts on MH lending that Ryan glosses over or blatantly ignores.

MHProNews has two upcoming video reports that will shed additional light on financing and quality affordable living issues that Ryan, Seattle Times, PBS NewsHour and those in league with CFED ignore. Marty Lavin’s in depth discussion on this topic, is linked here.  

Ryan’s Op-Ed, says MHProNews publisher L. A. ‘Tony’ Kovach, “badly misses the mark on the reality of manufactured home lending; whatever his intentions or motivations, Doug Ryan has proven that he doesn’t know what he’s talking about, as he essentially admitted in an interview with Jan Hollingsworth, that MH finance expert Dick Ernst is better informed on these topics,” found in an in-depth report linked here.

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The full GAO report on Manufactured Housing is linked from the image above or can be downloaded here.

Kovach reminds Daily Business News readers that Ryan has never denied any of the facts in reports MHLivingNews or MHProNews have published, and says if Ryan was correct and confident in his stance on these MH lending issues, he’d take up the offer to debate him and Ishbel Dickens.

Kovach commends Ryan to the extent that on paper, he and CFED are pro-MH as an affordable housing solution, while pointing out that sadly the policies Ryan and his associates advocate for via their media efforts are actually harming manufactured home owners, lenders and businesses. “The GAO’s report on manufactured housing has already documented, as have one of the GSEs’ own reports, that even with somewhat higher interest rates, MH is the lowest cost and the lowest monthly payment of any form of housing,” Kovach stated. “Modern manufactured homes are the solution to the affordable home crisis, and the path to more lending is found by allowing the free market to work and not be impeded by federal regulations and well meaning, but misguided policy advocates.” ##

(Image credit: Royal Homes of Raleigh)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

FHFA’s Conservatorship of GSE brings charges of Illegalities and Strong Criticism

December 19th, 2014 Comments off

michael-h-krimminger-partner=cleary-gottlieb-american-banker=credit-posted-daily-business-news-mhpronews-com-Many people in businesses related to the U.S. housing industry feel that reform of U.S. housing finance is essential to avoiding another financial crisis. In an article published in American Banker, former FDIC counsel Michael H. Krimminger said that the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, remain wards of the state. This came as a result of the conservatorships they were placed under in 2008.

The rulings of the Federal Home Finance Agency (FHFA) have affected not only traditionally built housing, but modern manufactured housing as well. Krimminger says that “the government-sponsored entities’ current state of limbo is untenable. At best, the arrangement reinforces continued government dominance of the housing market.”

Krimminger continues by saying it distorts our housing finance system, preserves incentives to misprice mortgages, and creates the potential for a future housing crisis.

One action of the Conservator has resulted in protests and more than 20 lawsuits. This revolves around the decision in 2012 to change the terms of the agencies’ conservatorships and sweep 100 percent of Fannie’s and Freddie’s profits to the U.S. Treasury as dividends in perpetuity.

This is still occurring despite the fact that Fannie and Freddie have now paid back almost $40 billion more than they were originally loaned.

Krimminger says that “this prevents Fannie and Freddie from accumulating any cushion against future losses — potentially putting the fhfa-logo-house-cash-scott-lewis-flickrcreativecommons-posted-daily-business-news-mhpronews-taxpayers at further risk.” He adds that the perpetual conservatorships and Treasury sweeps are a violation of every principle of insolvency law, and that the Housing and Economic Recovery Act of 2008 (HERA) was never meant to authorize permanent government control over the housing sector.

Under HERA, the FHFA and Treasury have the clear statutory authority to begin reform by ending the conservatorships of Fannie and Freddie, but will they do it?

Other voices have been raised in protest of the denial of any compensation to be paid to the GSE stockholders. In a recent lawsuit filed by Perry Capital and Fairholme Funds, investors sued for breach of contract regarding promised dividends and what they termed to be an illegal “taking” under the U.S. Constitution. U.S. District Judge Royce Lamberth ruled against the Plaintiffs.

An article in the November issue of The M Report discussed the fact that Judge Lamberth’s decision, denying any compensation to shareholders, was met with vehement response by many people.

No way,” screamed numerous investors including consumer advocate Ralph Nader. They contend that giving the money to the Treasury is a violation of their Fifth Amendment rights against the seizure of private property for public use without just compensation.

Nader said, “This was deception of the first order. If any corporate executives engaged in something like this, even the slumbering SEC would have moved to action.”

Other legal experts also feel that a travesty has occurred. According to Richard A. Epstein, the Laurence A. Tisch professor of Law at NYU, the ruling handed down by Judge Royce Lamberth is seriously flawed.First, the judge’s opinion seriously misstates the rights and duties of the Federal Housing Finance Agency (FHFA) as a conservator,” Epstein explained. “Second, it seriously misstates the authority of Treasury under HERA. Third, it ignores any evidence on the possible collusion between FHFA and Treasury in fashioning the Third Amendment.

According to Epstein, the Third Amendment was not intended to return Fannie and Freddie to the private market, but was designed to ensure they would never be able to return to the market, no matter how profitable their operations had become.

He said that first, FHFA sold out its fiduciary duties as conservator to the Fannie and Freddie shareholders, and second, Treasury disregarded its obligations in ordering the dividend sweep, which if upheld, will render the stocks of the two companies worthless. Epstein feels that this is an example of the government taking over control of a company and paying out all dividends and capital to itself on a whim.

What this means is that no private company is ever safe,” he explained. “No private party will ever rely on government assurances or guarantees if the Third Amendment is allowed to stand. The rule of law, which is critical to the proper functioning of free markets, has no meaning if it can be suspended whenever deemed convenient.”

Manufactured housing has additional and unique issues with FHFA and the GSEs. These include the failure to implement the Duty To Serve (DTS), lack of access to secondary markets and more. We will explore those in a future report. ##

(Photo credits: Michael H. Krimminger, American Banker. House on cash – Scott Lewis/FlickerCreativeCommons + FHFA Logo.)

sandra-lane-daily-business-news-mhpronews-com-75x75-Article submitted by Sandra Lane to – Daily Business News – MHProNews.

 

Did the CFPB Fail its Own “Disparate Impact” Test?

May 23rd, 2014 Comments off

Thomas Brown, writing on bankstocks.com, reports the Consumer Financial Protection Bureau (CFPB) has jettisoned its personnel review board because on a 1-5 scale whites outscored Latinos who outscored blacks, so it will solve the inequality by paying everyone as a five. As Brown says, “This is no way to run an organization. It’s an issue of simple equity. ‘By self-identifying and self-correcting these (performance review disparities),’ CFPB head Richard Cordray told American Banker, ‘we are holding ourselves accountable to the same standards of fairness that we expect of our regulated entities.’ No. Treating the agency’s highest-rated employees the same as its lowest-rated ones is the opposite of fairness. Hard-working, conscientious workers (and, yes, the federal government does have those) deserve to be treated better and paid more than workers who, say, persistently show up late and turn in shoddy work.”

The CFPB intends to regulate banks on the very same issue of “disparate impact” in order to prevent discrimination in lending. He says, “The agency shouldn’t rely on disparate impact as a sign lenders deliberately discriminate against minority borrowers. If it does, then banks, to stay on the safe side, will likely respond by making credit less available to all borrowers. Who does that help?” MHProNews.com has learned Cordray set a standard of performance he was unable to attain in his agency so he abandoned it.

Thomas Brown is a long-time bank analyst who operates a hedge fund of financial services firms. ##

(Image credit: Steve Rhodes/getoutofdebt.org)

UFPI Elects Mary Tuuk to Board

February 4th, 2014 Comments off

MHProNews.com has learned from marketwatch.com Universal Forest Products, Inc. (UFPI) has announced that Mary Tuuk, executive vice president of corporate services and secretary of the board of directors of Firth Third Bancorp, has been elected to UFPI’s board of directors. In her role at Fifth Third she is responsible for the legal, compliance and governmental affairs functions. Her extensive professional and community affairs participation have earned her of recognition as one of the “25 Women to Watch in Banking” by American Banker each year since 2008. UFPI provides components to the manufactured housing industry.

(Photo credit: Universal Forest Products, Inc.)

ABA Blasts CFPB for blanket requests for sensitive information

August 29th, 2013 Comments off

american-bankes-association-logo-posted-daily-business-news-manufactured-housing-pro-news-The American Bankers Association (ABA) blasted the Consumer Financial Protection Bureau for a system they say lacks transparency in data collected from consumers. Law360 tells MHProNews that the CFPB also fails to sate how it plans to use the data to shape their policies. This comes on the heals of Senate Republicans concerns about the CFPB’s data gathering. The ABA alleged the CFPB’s request for a “generic clearance” new surveys of potentially sensitive consumer information. ##

(Image credit: ABA Logo)

American Banker Interviews Richard Cordray

August 20th, 2013 Comments off

While bankers fear the Consumer Financial Protection Bureau (CFPB) under Director Richard Cordray may be too aggressive, he assures them he is balancing safety and soundness with consumer protection. In a wide-ranging interview with American Banker, he says despite the fight over his initial recess appointment, he and his staff prioritized their mission: Protect and empower consumers in a financial marketplace. He says the Bureau recently received its 200,000 complaint, a statistic he says indicates the protection is being effective, as MHProNews has learned. Responding to a question regarding the biggest challenges of the agency, he referred to the four D’s: Deceptive and misleading marketing of products; debt traps like payday loans and deposit-advance products that can garner up to 390% interest; discrimination—treat all consumers the same; and dead ends, like debt collection, loan servicing, and possibly student-loan servicing and other instances in which the consumer is between two institutions. For the complete interview, please click here.

(Image credit: Consumer Financial Protection Bureau)

Castle and Cooke Deny Wrongdoing

July 25th, 2013 Comments off

Updating a story MHProNews posted earlier today about allegations by the Consumer Financial Protection Bureau (CFPB) that Castle & Cooke Mortgage of Salt Lake City made illegal incentive payments to loan officers, the president of C & C denied the charges and is seeking to resolve the issue. “We don’t compensate loan officers based on the terms of a loan and we are not motivated to upsell,” Matthew Pineda said to American Banker. “The company has been cooperating with the CFPB in its investigation for more than a year, and anticipates an amicable resolution in this complex regulatory matter,” according to a statement the lender issued. As nationalmortgagenews informs MHProNews, the CFPB filed suit in U.S. District Court in Salt Lake July 23.

(Image credit: texaslendingtoday)