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Highlights Of Consumer Financial Protection Bureau Director Kathleen Kraninger’s First Six Months, What’s Next?

June 12th, 2019 No comments

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Retailers. Communities. Have you noticed how relatively quiet word from the Consumer Financial Protection Bureau (CFPB) has been in the past 6 months?

 

Yesterday, June 11, marked the first six months of Director Kathleen L. Kraninger taking the helm from acting director Mick Mulvaney. 

Mulvaney has since moved on to the role as acting chief of staff for President Donald J. Trump.

The federal agency is still enforcing laws, but is striving – per their statement below – to do so in a more thoughtful manner, where business has a better sense of what it can or can’t do.  That increased certainty should be good for business over the long haul. In the video interview that follows below, she makes it clear that protecting and educating consumers matters to her.

 

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Here is her most recent, perhaps first, mainstream news video interview on the topics that follow. By the way, this interview with Bloomberg – a left-of-center media outlet – exemplifies a balance that some may not realize can exist in the mainstream.  There are weaponized interviews, ‘fake news,’ and balanced reports.  This is arguably fair and balanced.

 

 

 

The CFPB news release to the Daily Business News on MHProNews will be followed with some additional details about the new director, plus manufactured home industry related material.

 

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WASHINGTON, D.C. – June 11th marks the first six months of Director Kathleen L. Kraninger leading the Consumer Financial Protection Bureau.

“It is an honor and privilege to serve American consumers. As Director, my focus is to prevent harm to consumers by using all the tools Congress gave us, including education, regulation, supervision and enforcement. I look forward to building on the efforts and progress of these first six months,” said Director Kraninger.

Under Director Kraninger’s leadership, the Bureau:

Educated consumers about financial products and money management

• Launched an initiative, Start Small, Save Up, to increase emergency savings among consumers;
• Expanded the Misadventures in Money Management financial education tool for active-duty servicemembers;
• Educated consumers about mortgage closing scams;
• Educated consumers on debt collection, including steps they can take to resolve a debt, telling the difference between a legitimate debt collector and scammer, and top debt collection questions answered;
• Performed an extensive analysis and report on what suspicious activity reports reveal about elder financial exploitation;
• Provided technical assistance to VITA (Volunteers in Tax Assistance) sites in how to support the people who they serve in making choices about saving part of the tax refund;
• Issued a set of reports for use by state and local leaders working to set up child savings programs;
• Released an education page on financial preparedness for a disaster;
• Received and handled 170,000 consumer complaints;
• Released a financial well-being practitioner toolkit for use by financial educators;
• Provided consumers a list with contact information on specialty credit reporting companies;
• Educated servicemembers and other consumers on new credit freeze protections, jointly with the FTC;
• Released an action booklet on building and managing credit for consumers as part of the Your Money, Your Goals;
• Continued to provide the Your Money, Your Goals guide to service providers to use as they inform individuals transitioning from incarceration on financial information and tools to manage their financial lives;
• Released two snapshots focused on mortgage and servicemembers complaints;
• Facilitated the training of over 1,700 social services staff with information and action steps in money management that they can share with the people who they serve; and
• Reached 25 million publications distributed and 25 million hits on its web service, AskCFPB, over the life of these services.

“Congress charged the Bureau with conducting financial education programs and ensuring consumers receive timely and understandable information to make responsible decisions about financial transactions. We will continue to look for ways to release innovative financial education tools and partner with public and private sector entities engaged in consumer financial education to maximize the reach of these tools,” said Director Kraninger.

Examined to Promote Compliance and Enforced the Law

• Took action against one of the 10 largest HMDA reporters for violating HMDA and Regulation C;
• Took action against a mortgage servicer for violating the Consumer Financial Protection Act; RESPA; Regulation X; the Truth in Lending Act; and Regulation Z;
• Filed a law suit against a debt collection firm for violating the Consumer Financial Protection Act and the Fair Debt Collection Practices Act;
• Filed a law suit against a credit repair company and several related entities alleging that they violated the Consumer Financial Protection Act and also the Telemarketing Sales Rule;
• Took action against a student loan servicing company that engaged in unfair practices that violated the Consumer Financial Protection Act;
• Took action against a company that violated the Consumer Financial Protection Act; the Gramm-Leach-Bliley Act; Regulation P; the Truth in Lending Act; and Regulation Z;
• Took action against an online lender that extends unsecured payday and installment loans for violating the Consumer Financial Protection Act;
• Took action against an individual who brokered contracts offering high-interest credit to veterans for violating the Consumer Financial Protection Act;
• Took action against a company for violating the Consumer Financial Protection Act, the Truth in Lending Act; and Regulation Z;
• Took action against a federally chartered savings association for violating the Consumer Financial Protection Act; the Electronic Fund Transfer Act; and Regulation E;
• Sought to enhance protections for servicemembers;
• Secured over $12 million in redress for consumers and $22 million in Civil Money Penalties; and
• Announced changes to policies regarding Civil Investigative Demands (CIDs) to ensure they provide more information about the potentially wrongful conduct under investigation.

“Enforcement is an essential tool Congress gave the Bureau – particularly because education, rulemaking, and supervision will not prevent every violation. We will use enforcement against bad actors who don’t comply with the law. Ensuring that justice is served in the public interest – that is our goal in using the enforcement tool. Further, a purposeful enforcement regime can foster compliance, help prevent consumer harm, and right wrongs,” said Director Kraninger.

Modernized, clarified, and reduced burden of rules

• Issued the first proposed rulemaking to implement the requirements and prohibitions applicable to debt collectors under the Fair Debt Collection Practices Act since it was passed in 1977;
• Became a coordinating member of the Global Financial Innovation Network (GFIN), a world-wide effort to promote financial innovation that benefits consumers;
• Published a request for information concerning the need for and scope of exceptions under the Remittances Rule;
• Issued an Advance Notice of Proposed Rulemaking to commence developing proposed regulations addressing PACE financing, a relatively new form of financing of home improvements for environmental purposes;
• Issued new written guidance to clarify the TRID Rule and thereby promote mortgage firms’ compliance with the rule;
• Issued new standards the agency will use to meet its obligations under Section 610 of the Regulatory Flexibility Act to conduct reviews of certain rules to evaluate their burden on small businesses;
• Issued comprehensive assessment reports evaluating the effectiveness of the ATR-QM and Mortgage Servicing (Regulation X) Rules to comply with Section 1022 of the Dodd-Frank Act;
• Published proposed rules to delay implementation of and to reconsider the Mandatory Underwriting Provisions of the small dollar rule;
• Published proposed rules to reconsider the mortgage reporting thresholds in the 2015 HMDA Rule and published an advance notice of proposed rulemaking to obtain information to assist in the development of proposed rules to reconsider data points in the 2015 HMDA Rule.
• Issued final policy guidance explaining how the Bureau will modify publicly disclosed HMDA data to protect the privacy of consumers; and
• Commenced implementation of measures to streamline and improve the Bureau’s rulemaking process, such as providing materials to the public that are easier to understand, receiving more feedback from small businesses on proposals, planning to release SBREFA panel reports earlier in the process, maximizing public engagement by generally using a 90 day comment period for complex proposals, and posting all comments submitted in rulemakings to the public docket.

“I am committed to improving the Bureau’s rulemaking process as it will lead to better policy outcomes,” said Director Kraninger. “Improving the rulemaking process will ensure we have clear rules of the road that protect consumers and more effectively execute the Bureau’s mission. This process will increase transparency, public engagement, and thorough, data-driven analysis. To further improve our regulatory process we are developing a way to obtain input from state and local officials, as well as an initiative to ensure that outdated, unnecessary, or unduly burdensome regulations are identified and addressed.”

During her first six months, Director Kraninger has also visited all of the Bureau’s regional offices throughout the country and engaged with regional staff, as well as participated in an on-site exam. In this time, Director Kraninger has engaged with over 600 consumer groups, consumers, state and local government officials, military personnel, financial institutions, academics, non-profits, and former and current Bureau advisors, and traveled to 10 states. Lastly, Director Kraninger announced enhancements to the Bureau’s advisory committees and announced a symposia series aimed at stimulating a proactive and transparent dialogue in the policy development process.

The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by regularly identifying and addressing outdated, unnecessary, or unduly burdensome regulations, by making rules more effective, by consistently enforcing federal consumer financial law, and by empowering consumers to take more control over their economic lives.

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KatherineKathyKraningerDirectorConsumerFinancialProtectionBureauWashingtonDCLinkedInProlifeDailyBusinessNewsManufacturedHousingMHProNews

 

When manufactured housing professionals think of the CFPB, a common thought is about the Preserving Access to Manufactured Housing Act.  A fresh, deep review of that can be accessed via the hot-linked text-image box below.  Note that the following covers a timeframe prior to the new director, thus, is no reflection on her either way.

 

Rope-a-Dope – Preserving Access to Manufactured Housing Act, Mom, Dad, & You

What’s next at the CFPB?  That will depend in good measure on what occurs on Election Day, 2020, and the runup to that event.  Stay tuned.

That’s this hump day morning’s first installment of News Through the Lens of Manufactured Homes, and Factory-Built Housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

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In a series of direct quotes in context, a document from 21st Mortgage signed by Tim Williams, and video recorded comments by Kevin Clayton, these all line up to demonstrate how independent retailers, communities, and producers – among others – where purportedly harmed by action that could be deemed an antitrust violation.  https://www.manufacturedhomelivingnews.com/bridging-gap-affordable-housing-solution-yields-higher-pay-more-wealth-but-corrupt-rigged-billionaires-moat-is-barrier/

 

CFPB Outlines New Regulatory Plan, Review

May 14th, 2019 Comments off

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In a news release to the Daily Business News on MHProNews on 5.12.2019, the Consumer Financial Protection Bureau (CFPB) said the following.

 

 

Consumer Financial Protection Bureau Outlines Plan to Review Rules Under the Regulatory Flexibility Act

WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) published a notice on how it plans to periodically review regulations under the Regulatory Flexibility Act (RFA) and to request public input. Additionally, the Bureau published a notice requesting public input as part of its first RFA review examining the 2009 Overdraft Rule.

In Section 610 of the RFA, Congress specified that agencies review certain rules within 10 years of their publication, and consider the rules’ effect on small businesses. The purpose of the review is to minimize any significant economic impact of the rules upon a substantial number of small entities, consistent with the stated objectives of applicable statutes. At the conclusion of each review, the Bureau will determine whether the rule should be continued without change, or should be amended or rescinded. The RFA requires each agency to invite public comment on each rule undergoing review and to consider specific factors, including:

· The continued need for the rule;

· The nature of public complaints or comments on the rule;

· The complexity of the rule;

· The extent to which the rule overlaps, duplicates, or conflicts with federal, state, or other rules; and

· The time since the rule was evaluated or the degree to which technology, economic conditions, or other factors have changed the relevant market.

The public will have 60 days to comment on the CFPB’s plan after publication in the Federal Register.

The CFPB’s RFA 610 review plan can be found at: https://files.consumerfinance.gov/f/documents/cfpb_rfi_regulatory-flexibility-act.pdf

The Overdraft Rule

The CFPB is also announcing the launch of its first RFA 610 review, which is of the 2009 Overdraft Rule.

In 2009, the Federal Reserve Board issued a rule that limits the ability of financial institutions to assess overdraft fees for paying automated teller machine (ATM) and one-time debit card transactions that overdraw consumers’ accounts. The rule amends Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The Bureau recodified Regulation E, including the amendments made by the Overdraft Rule, in 2011 when the Bureau assumed rulemaking responsibility under the EFTA. Today’s notice seeks comment on the economic impact of the Overdraft Rule on small entities. The public will have 45 days to comment after publication of the notice in the Federal Register.

The CFPB’s notice of review and request for comment on the 2009 Overdraft Rule can be found at: https://files.consumerfinance.gov/f/documents/cfpb_rfi_overdraft-rule.pdf

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The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by regularly identifying and addressing outdated, unnecessary, or unduly burdensome regulations, by making rules more effective, by consistently enforcing federal consumer financial law, and by empowering consumers to take more control over their economic lives.

That’s this pre-dawn edition of the #1 most-read “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

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21st Mortgage Suit’s CFPB Denial, Exclusive Document on Berkshire Hathaway Manufactured Housing Brands Investigation

CFPB and 21st, Second Shoe Drops? Flooring w/21st Mortgage Corp? Insider Tips

Inside Scoop Mulvaney-CFPB and MHI, Berkshire Hathaway Company Meeting Detail$

MHI Lender Shakes Up DTS and MLO Rule Discussions

“Accurate, but Misleading” MHI Preserving Access to Manufactured Housing Act Alert – ‘Weaponized New$,’ Fact Check$

 

 

 

 

 

 

 

 

 

Sunday Morning Weekly Recap Manufactured Housing Industry News, October 22 to October 29, 2017

October 29th, 2017 Comments off
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Featured image credit, MHProNews.

Tony, every week there is so much that happens, this [The Sunday Morning Headline News Recap] is an easy way for me to review the news, thank you for this [feature] and your team’s coverage of factory-built housing.

Our featured articles for September are available on the MHProNews.com home page.

FYI – and ICYMI if you aren’t already on our twice-weekly emailed headline news update, click here to sign up in seconds.

Thousands get our emails, and the open and click through rates – per MailChimp – blow away others in media and publishing.  The reason?  “Relevant!” said a regular on MHProNews.

To see the line-up of over 2-dozen featured articles for the month of September, along with the headline commentary, please click this link here.

Manufactured, modular and prefabricated home professionals know that how a home got to its location should not define a person or their dwelling.

What the Daily Business News spotlights day-by-day are the tragedies, triumphs and struggles for acceptance of the obvious solution for millions for the growing affordable housing crisis in the U.S. and beyond.

When you read the lineup for the month found on the home page, you can reflect on another motto as you chart your own professional path ahead: “We Provide, You Decide.”  ©

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What’s New On MHLivingNews

 

October 28th, 2017

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October 27th, 2017

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October 26th, 2017

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October 25th, 2017

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October 24th, 2017

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October 23rd, 2017

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That’s $36,000 plus shipping. While HUD Code homes are still a better cost per square foot, will growing demand reduce the price of such competitors? Isn’t that the lesson of production – more demand, more production, costs decline – with all products?

October 22nd, 2017

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)
Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

Senators Fighting for Preserve Access to Manufactured Housing, Reality Checks

August 16th, 2017 Comments off
PreservingAccesstoMHActFeaturedImageCreditManufacturedHousingDailyBusinessNews

Featured image credit, Manufactured Housing, MHProNews.

The CFPB is “protecting” people right out of affordable manufactured homeownership. Congress should fight to give families opportunities – not take them away,” said Representative Andy Barr (R-KY) when a group of bipartisan representatives introduced the Preserving Access to Manufactured Housing Act back in March, per Global Newswire.

There is widespread industry agreement on Barr’s statements.

More recently, a group of bipartisan U.S. Senators have also introduced a bill entitled the Preserving Access to Manufactured Housing Act, the Manufactured Housing Institute (MHI) sponsored bill, per Financial Regulation News.

Sponsors of the Senate bill include Senators Joe Donnelly (D-IN), Pat Toomey (R-PA), Tom Cotton (R-AR), Joe Manchin (D-WV), and Gary Peters (D-MI).

SenatorsPreservingAccesstoMHActCreditsSenatorJoeDonnellyWikipediaDailyBusinessNews

Pictured in order: Senators Joe Donnelly (D-IN), Pat Toomey (R-PA), Tom Cotton (R-AR), Joe Manchin (D-WV), and Gary Peters (D-MI). Credits, Senator Joe Donnelly, Wikipedia, MHProNews.

The Preserving Access to Manufactured Housing Act aims to address guidelines that were introduced in January 2014 by the Consumer Financial Protection Bureau (CFPB) that restricts approvals of so-called high-cost mortgages under the Home Ownership and Equality Protection Act.  It also addresses issues with the so-called MLO rule.

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Featured image credits, CNN Money, Pexels, Rational Standard, MHProNews.

There is widespread agreement by manufactured housing professionals and associations that the goals of Preserving Access are good ones.

The problem?

Third-party experts state that the odds are only 6 percent for the passage of the bill (see screen capture, below).  After MHProNews broke that reality check to the industry, the MHI DC ‘Fly-In’ resulted in one of the lowest attendance by members…ever.  Sources say that MHI’s cosponsor efforts are lagging behind that of the previous Congress.

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The Daily Business News has been documenting the reality of the bill, vs. the hype being promoted by those who count the number of emails going to members of Congress.

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On the record comment by an MHI/NCC member. For more, click above.

At each stage, MHI has been given – and failed – to respond to the concerns about the bill’s realities, including the 5 years of previously failed attempts to pass the predecessors to this current bill.

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Image credit, Manufactured Homes.

MHProNews has also spotlighted the anti-Preserving Access forces, including by Prosperity Now (formerly known as CFED).

ProsperityNowFormerlyCFEDlogoAntiPreservingAccessManufacturedHousingActHR1699DailyBusinessNewsResearchDataReportsMHProNews

For many Americans, manufactured homes are the most affordable form of housing available. This bill would help prevent federal regulations from getting in the way of financing for families that need it. I am grateful a bipartisan group of colleagues joined me in introducing legislation to keep manufactured housing obtainable for working class families,” Donnelly said.

The Preserving Access to Manufactured Housing Act addresses one of the biggest issues surrounding manufactured housing finances – Dodd-Frank – which creates problems for borrowers with less-than-perfect credit who seek to become homeowners.

Low-cost manufactured housing presents a unique opportunity for prospective homeowners, but the lack of financing options post-Dodd-Frank has pushed even this further out reach. People who feel they no longer have an option for homeownership will continue to rent because of this.

In a time when rents are increasing far faster than wages, this is a less than ideal situation.

HowManyRentersHowHighAreRentsDailyBusinessNewsPixabayManufacturedHousingIndustryProNews

The Daily Business New also recently reported that according to HUD, that over 8 million renters are considered “worst case” renters – who could be a single emergency expense away from losing the roof over their heads.

Congress needs to understand how important access to credit is for working families, veterans, retirees, and those living in rural America. The negative impact these federal rules are having on their ability to become homeowners can be corrected with this bill,” per Financial Regulatory News.

While Dodd-Frank and the CFPB were intended to help protect consumers from high-cost mortgages and loan products, it has instead made it harder for deserving people to obtain financing for affordable manufactured housing.

Even when they may have qualified with the right lender, people searching for financing for a manufactured home are often denied.

The reason?

Because industry professionals are banned from talking to consumers about their financing options unless they have a loan originators license. Isn’t this an infringement on our First Amendment rights to free speech?

DoddFrankFreedomofSpeechCreditsCNNMoneyPexelsRationalStandardDailyBusinessNews

Featured image credits, CNN Money, Pexels, Rational Standard, MHProNews.

A pro-Preserving Access, an MHI connected source tells MHProNews this past week that they don’t believe that the association’s leadership actually believes they will pass the bill.  Is it time to take an entirely different strategy?

Unfortunately, financing for the product has been jeopardized by one-size-fits-all regulations that fail to recognize the unique nature of manufactured housing loans,” Toomey said.

What Toomey and Others Aren’t Saying

The problem, which Toomey doesn’t address, is the one noted above.  Namely, that the solution proposed by MHI has only a 6% chance of passage.

Meanwhile, MHI failed to join the PHH vs. CFPB case – or missed taking more certain options – that could have changed the currently problematic state of the Dodd-Frank Act. ## (News, Analysis.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to Daily Business News for MHProNews.

 

 

 

 

 

Wells Fargo and the CFPB – Who are Feds Working for – Consumers? Business? Itself?

September 21st, 2016 Comments off

senatorelizabethwarrend-ma-thenation-manufacturedhousingindustrydailybusinessnews-mhpronewsI accept fully responsibility for all unethical sales practices,” Wells Fargo Chairman and CEO John Stumpf said in a prepared statement on Capitol Hill yesterday, testifying before the Senate Banking Committee.

As millions have heard, 5,300 workers were fired and the company agreed to pay $185 million in fines to the Los Angeles City Attorney, the Comptroller of the Currency and the Consumer Financial Protection Bureau (CFBP).

Stumpf’s statement did not help him avoid intense criticism from senators, including Elizabeth Warren (D-MA), who blistered him, calling on the embattled CEO to resign.  As Dodd-Frank is a presidential campaign theme, Warren saying Stumpf should be criminally investigated may be viewed as having political overtones to it.

Have you returned one nickel of the money that you earned while this scandal was going on?” asked Ms. Warren, one of the driving forces that helped create the CFPB.

Have you have fired any senior management, the people who actually oversaw this fraud?” Ms. Warren continued.

No,” Mr. Stumpf replied.

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 “Your definition of accountability is to push this on your low-level employees. This is gutless leadership,” she said.

While one understands that Wells Fargo team members have done wrong, what is less clear is the role that the CFPB is playing, and why.

The Bigger Picture – Dodd-Frank, CFPB and the MH Connections, revisited

Created in 2011 as a part of the Dodd-Frank law, the agency has operated under a cloak of ongoing controversy, including:

  • accusations of lack of inclusion,
  • internal discrimination,
  • illegal hiring,
  • wasteful spending,
  • bullying of businesses and
  • inefficient regulations

There is also the matter of a so-called “drafting error” in the Dodd-Frank law that prevented supervisory examinations of most businesses – other than large banks – before the agency had its first director.  

Many of the functions of the CFPB already existed in other agencies. With hundreds of community banks put out of business due to the high cost of the new regulatory burdens, opponents of the law argue that it has helped large banks, rather than helped avoid “too big to fail,” which was part of the stated goal for the bill and agency.

As readers of the Daily Business News  and MHLivingNews know, each has covered issues around Dodd-Frank and the CFPB in great and ongoing detail.

Against that backdrop, Ronald Rubin’s recent Weekly Standard column poses an important question.

If the CFPB could only examine or audit large banks prior to 2012, why didn’t the CFPB detect the hundreds of thousands of accounts opened at Wells Fargo without customer authorization between 2011 and now? What were examiners doing?

Rubin says, “The Consumer Financial Protection Bureau wasn’t the hero; they were asleep at the wheel.”

This question points to a challenge with many government agencies, which is the ability to discover, address and stop illegal behavior in a timely manner. It gets to the heart of the inefficiency sometimes found in huge federal bureaucracies, as the VA scandals have exemplified.

With Secretary Hillary Clinton, Elizabeth Warren and others in their party proclaiming the wonders of Dodd-Frank, and GOP nominee Donald Trump promoting a repeal and replace theme, the issue looms large for manufactured housing professionals, and the nation.

The Buffett Connection

Warren Buffett’s Berkshire-Hathaway owns a sizable stake in Wells Fargo.  Berkshire Hathaway (BH) is the parent company to Clayton Homes, Vanderbilt Mortgage, 21st Mortgage and a host of other suppliers, service providers and producers in the manufactured and modular housing industry, and is one of the stocks tracked in our daily market report.

TriStar Estates mhc

An example of a manufactured home community, this one, an hour’s drive from Chicago, IL. TriStar Estates, photo credit, MHProNews.

Wells Fargo makes fee simple loans on manufactured homes, as well as does commercial lending that includes manufactured home land-lease communities.

Beyond the Wells/BH connection, this is a significant issue for the manufactured housing industry on many other levels.  Regulations in general – and Dodd-Frank specifically – has created burdens for homeowners, prospective buyers and businesses alike.

Rubin points out that while others came across the Wells Fargo problems first, the CFPB media blitz reduced the other agencies – and the media – that participated in uncovering the issue, to becoming what looked like bystanders.

That may be the CFPB’s and its supporters’ goal.  Federal agencies, especially one that Republicans have targeted for replacement, will naturally seek to justify their own existence.

So the Wells Fargo story may mask a deeper issue on the effectiveness, good-or-harm that Dodd-Frank and the CFPB have actually accomplished.

If manufactured housing veteran Alan Amy is correct, the CFPB’s implementation of Dodd-Frank regulations has cost the industry about 30 percent more sales.  That represents well over a billion dollars in negative impact. How much is the CFPB’s impact spread across the reset of the U.S. economy?  ##

(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, MHProNews.

Dodd-Frank Inspired Regulations Harming the Poor at Bank and Check-out Counters

August 22nd, 2016 Comments off

Dodd_Frank___bloombergbusinessweek___credit postedDailyBusinessNews-MHProNewsWhile Sen. Elizabeth Warren(D-Mass.) sings the praises of the six-year-old Dodd-Frank Act, saying, “If a bank screws up, you have someone to call so you don’t get stuck with the bill,”

in fact, consumers get stuck with the bill whether a bank makes mistakes or not.

The American Action Forum, according to what theblaze tells MHProNews, reports the true costs equate to $112 per individual and $310 per household, a direct result of expanded powers from new regulatory agencies, costs that stem from compliance alone. Based on this data, the Forum estimates the regulations have resulted in consumers and businesses spending 74 hours on paperwork with an impact of $36 billion.

Treasury Secretary Jack Lew has said Dodd-Frank and its offspring, the Consumer Financial Protection Bureau (CFPB), has provided “over $11 billion in relief for more than 27 million hardworking Americans,” but in fact, regulations have led to a 14.5 percent decrease in revolving credit.

Under the Durbin amendment, as added to the Dodd-Frank legislation, the Federal Reserve has limited the amount that banks with over $10 billion in assets can charge merchants for debit card purchases (“swipe fees”) to 21-23 cents per event.

Prior to the Durbin amendment merchants would charge one percent per transaction to cushion against the risks of fraud or overdrafts by consumers, and the average swipe fee was $0.44 per transaction. The thinking was consumers would save at the checkout counter by cutting the swipe fee in half. However, a study by the Richmond Federal Reserve reveals big-box retailers did not pass on the savings.

Additionally, the Boston Federal Reserve reports the Durbin amendment has cost large banks at least $14 billion a year or more in order to make up for lost revenue and riskier retail transactions, resulting in higher ATM and overdraft fees, stricter limits on debit card transactions and less free checking. Unfortunately, Americans at the poverty level are the ones hurt the most by restrictions on minimum balance checking and low-cost banking services.

In the presidential campaign, Hillary Clinton intends to add to regulations, which would continue to harm consumers and businesses alike, while Donald Trump said he would dismantle Dodd-Frank. ##

(Image credit: bloombergbusiness)

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

Sunday Morning Recap-Manufactured Housing Industry News Aug. 14-Aug. 21, 2016

August 21st, 2016 Comments off

MHProNews_Sunday morning recap of week's stories postedDailyBusinessNewsMHProNewsWhat’s New in public focused Manufactured HomeLivingNews.com

Tiny Houses Owners face Big Legal Trouble?

What’s New in Manufactured Housing Industry Professional News

Financial Services Committee says Dodd-Frank is damaging. YES! Communities redistributes assets. Private enterprise ready to supply modular buildings to flooded LA. MHI, MHARR spar with DOE, as MHI takes on Section 8 Vouchers. Claims in wake of flooding in LA rise to 70,000. $15 mandated minimum wage would cost 9 million jobs. Canadian city mixes manufactured and site-built homes. FEMA’s manufactured housing units likely going to Louisiana. Entry level housing may be coming back. Clinton and Trump’s economic, tax policies divergent. Georgia town halts siting of MH. Southwest Louisiana city nixes MHC plan. Pray’s Homes in Maine has new owner. Mandate requires MHC owners give 90 days pre-closing notice. And much, much more in news, views, and information from across the globe you may peruse regarding off-site home and building construction.

Saturday, Aug. 20

MHI, MHARR, Leaked documents and DOE proposal, plus MHI on New Section 8 Vouchers

Friday, Aug. 19

Financial Services Committee Slams Dodd-Frank as Damaging

Private Enterprise Responds to Assisting Louisiana Flood Victims

Skyline Leads Manufactured Housing Sector Amidst MHCV and Broader Market Tumble

Hedge Fund Investors Bustling over Equity LifeStyle Properties

Manufactured Home Community Bordering Google Transforming into Tech Town

70,000 Claims for Assistance Filed Following Louisiana Flooding

Thursday, Aug.18

$15 Hour Minimum Wage would Cost Nine Million Jobs Nationally

New Manufactured Home Retailer Opening in Kentucky

Drew, Manufactured Housing CompValue and Dow rises – Is Fed Easing to Infinity?

Inventory of Entry-level Homes may finally be Rising

Canadian City Allows Manufactured Homes in Area Zoned Single-family Residential

Insiders Busy Trading Patrick Industries as it Joins S&P SmallCap 600

Wednesday, Aug. 17

FEMA’s Manufactured Home Units Likely Heading to Louisiana

Home Sales Take a Tumble in California

REITs beat S&P 500 with Promising Forecast for the Year

Northern Georgia Town Votes Moratorium on New Manufactured Home Sitings

Calcasieu Parish Planning Committee Nixes MH Community Development

Clinton v Trump – Presidential Nominees and their Tax, Economic Strategies

Tuesday, Aug. 16

San Jose CA set to Vote on Modular Homes for the Homeless

Home Construction Continues its Slow but Steady Incline

Residents of Oregon Manufactured Home Community Consider Long-term Leases

Manufactured Homes can be as Modern as Traditional Houses, says Realtor on FoxNews

Pray’s Manufactured Homes in Maine has New Owner

Mon. Aug. 15

Stock Exchange Winners and Losers under a Clinton Presidency

Logan’s Crossing Manufactured Home Community Announces Annual Scholarships

Skyline Up, Manufactured Housing CompValue (MHCV) Mirrors Dow

Eight Modular Homes for Low-income Families Rising in Illinois

Manufactured Home Community Owner YES! Redistributes Assets

Ordinance Mandates Community Owners Give Nine Months Notice Before Closing

Sunday Morning Recap-Manufactured Housing Industry News Aug 7-Aug.14, 2016 ##

(Photo credit: MHProNews)

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

CFPB Tries to Clarify Know Before You Owe, but Lenders Still See Glitch

July 30th, 2016 Comments off

  mortgage app  housingwire credit postedDailyBusinessNewsMHProNewsIn an attempt to provide more clarity to lenders on the Consumer Financial Protection Bureau(CFPC)’s “Know Before You Owe” mortgage disclosure rule, the agency has proposed “additional tolerance provisions, clarified a partial exemption for housing finance agencies, extended the rule’s coverage to all cooperative units, and provided more clarity about privacy and the sharing of information,” according to nationalmortgagenews.

However, the proposed rule did not clear up “technical” errors in mortgage disclosures, leading some investors earlier this year to refuse to purchase loans because the CFPB could not guide them in curing these errors. The mortgage industry has stated compliance is nearly impossible because there are hundreds of variables to consider on the disclosure form.

The CFPB, noting it cannot address every concern, said it “would not be practicable without substantially undermining incentives for compliance with the rule” and that it “would be extraordinarily complex,”according to Richard Horn, a former CFPB attorney.

CFPB Director Ricahrd Cordray stated, “Our proposed updates will clarify parts of our mortgage disclosure rule to make for a smoother implementation process.”

MHProNews understands lenders seek certainty. If there is a problem that is not addressed, causing lenders to turn away, borrowers, lenders and the economy all lose.

Public comment is open until Oct. 15 on the proposed amendments. ##

(Image credit: housingwire)

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

Sunday Morning Recap-Manufactured Housing Industry News July 10-July 17, 2016

July 17th, 2016 Comments off

MHProNews_Sunday_morning_recap_7-2016 postedDailyBusinessNewsMHProNewsWhat’s New in public focused Manufactured HomeLivingNews.com

Educator, Builder Compare Conventional House to Residential Style Manufactured Home Living & Quality

Illinois Professional Couple Discover their Getaway Home near Florida’s top Beaches

What’s New in Manufactured Housing Industry Professional News

Section 8 vouchers good for buying manufactured home. CBO: U. S. taxing itself into more debt. Large manufactured home community planned in southwestern Louisiana. Manufactured Housing Association for Regulatory Reform slams DOE proposal as a sham. Sun hires Xactly to streamline compensation. CFPB Director Cordray survives challenge to appointment. Calls for housing finance reform continue. Down under firms collaborating on modular homes. Fort Meade MHC looking for professional management. New Zealand government providing low-income modular housing. Pennsylvania town planning modular subdivision. House appropriations bill includes alteration to CFPB. News, views and information you can use in your professional life.

Saturday, July 16, 2016

Pine Ridge Manufactured Home Community gets Green Light to Expand

Friday, July 15

Patrick Stock has Risen +58.35 Percent in Seven Months

Dow Slips from Record High; Deer Valley Corp. Tops Gain Column

Senate Passes Bill to Allow MH Purchase with Section 8 Vouchers

Congressional Budget Office: America Taxing Itself into Poverty

Manufactured Home Ordinance Redefines MH Registration in South Carolina

Large Manufactured Home Community Planned for Southwestern Louisiana

Thursday, July 14

Drew Industries Included in Top 50 U. S. Manufacturers

Gas Furnaces in some New Mexico MH Pose Risk

NorthStar Advances 2.28%; Dow gains 134 points, Hits New High

MHARR Issues a Call to Arms to Defeat the Enactment of DOE’s New Proposal

RV and Mfg. Home Hall of Fame Museum on Indiana Must Visit List

HUD Funding Local Housing Authorities to House Homeless Vets

Wednesday, July 13

Sun Communities Aims to Streamline Compensation and Enhance Workflows

CFPB Director Cordray’s Rulings Pre-Confirmation Survive Challenge

Calls for Housing Finance Reform Continue to Resound

MHCV Ends Day above 1500; Patrick Falls more than other Tracked Stocks

Aussie and New Zealand Firms Collaborate on Modular Homes

Hedge Funds Trading in Shares of Sun Communities

Tuesday, July 12

Newby Management considered for Fort Meade’s MH Community

Revolution Pre-Crafted Properties launched Classy Modular Homes for Masses

Manufactured Housing Composite Value passes 1525, but Investors Keep selling

425,000 more Underwater Borrowers now Floating again

New Zealand Government Providing Modular Affordable Housing

Mon. July 11

PA Town Siting Modular Homes in New Subdivision

House Passed Appropriations Measure would Alter Funding and Leadership of CFPB

NorthStar Realty Finance Tops Leaders again, Advancing +4.97%; Deer Valley Drops -11.75%

Home Construction Industry Still Lacking Qualified Workers

Retailer Offering Free Seminar on New MH and Modular Construction

Sunday Morning Recap-Manufactured Housing Industry News July 3-July 10, 2016 ##

(Photo credit:MHProNews)

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

 

CFPB Director Cordray’s Rulings Pre-Confirmation Survive Challenge

July 13th, 2016 Comments off

CFPB Dir. Richard_Cordray_c-span2__credit postedDaily BusinessNewsMHProNewsThe Consumer Financial Protection Bureau and Director Richard Cordray dodged a legal bullet when U. S. District Judge Ellen Segal Huvelle in Washington ruled a challenge to Cordray’s authority by Big Springs National Bank of Big Spring, Texas did not have merit.

The bank filed the suit in 2012, claiming he was a recess appointee when he issued five lending-related regulations, as bloomberg tells MHProNews, making the rulings invalid even though he ratified them the next year after his Senate confirmation. Plaintiffs raise three arguments to dispute the effectiveness of Director Cordray’s ratification,” Huvelle wrote in her ruling Tuesday, “none of which is persuasive.”

The bank’s attorney, Greg Jacob, said the decision will be appealed. “Judge Huvelle’s holding that Director Cordray could ratify literally thousands of invalid actions, including invalid rulemakings, by publishing three perfunctory sentences with no accompanying process at all cannot be right, and we are confident we will prevail on appeal,” Jacob said. The bank contends Cordray operates as a “mini-president of consumer finance” without being accountable to congress or the president.

Meanwhile, mortgage services company PHH Corp. had also raised the constitutionality of the CFPB’s authority, saying the agency director’s role violates the separation of powers principle. That case will next be heard in the U. S. Court of Appeals in Washington, D. C. ##

(Photo credit:cspan 2-CFPB Director Richard Cordray)

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