Posts Tagged ‘House Financial Services Subcommittee’

Consumer Financial Protection Bureau is Rife with Discrimination

August 15th, 2015 Comments off

consumer_financial_protection_bureausteve rhode slas get oug of debt org__kicks_aWriting in townhall, Ken Blackwell says the four-year old Consumer Financial Protection Bureau (CFPB) discriminates against the people it has vowed to protect, inside and outside the agency, and is riddled with waste, inefficiency and mismanagement.

Noting Director Richard Cordray would be out of a job if the agency was a sports team, the goal of investigating discriminatory lending practices has just not happened. The agency developed a system designed to inform regulators of unfair treatment of minorities by lenders, but a study revealed the methodology for pinpointing African-American borrowers was off by as much as 41 percent.

In 2013 Ally Financial was charged by the CFPB with lending discrimination involving 230,000 minority customers, and MHProNews understands the company paid an $80 million fine, but none of the lending victims have received any restitution. Blackwell says the CFPB was unable to identify the people who were victimized, so the agency distributed the funds to powerful left-wing activist groups that work with low-income and minority groups.

Internally, testifying before a House Financial Services subcommittee to address claims of discrimination, a number of CFPB employees say the atmosphere within the agency is racially charged, and that black employees have been constantly belittled and feared reprisal for voicing objections.

The President of the National Treasury Employees Union Chapter 335, Robert Cauldwell, a CFPB examiner, says Director Cordray has not responded to charges of discrimination within the agency, which has led to a worsening atmosphere in the workplace. He says older, experienced employees are being replaced by people with no experience who the agency can mold into a desired image. “They send these new employees, who have never worked in the industry or litigated a case in court, to training classes for two or three weeks, and then put them in charge of decision making about the institutions we supervise,” says Cauldwell.

Blackwell concludes the CFPB is inefficient, sloppy and mismanaged under Director Cordray and therefore cannot offer American consumers the protection for which it was designed. He says, “Congress needs to reexamine the CFPB and either clean house or shut the doors. The job of consumer financial protection is clearly not getting done. ##

For testimony regarding racial discrimination within the agency, click here for thehill blogpost.

(Image credit: Rhodes-Consumer Financial Protection Bureau)

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

Legislator asks to Delay New Mortgage Rules

October 25th, 2013 1 comment

Representative Shelley Moore Capito (R-WV), who serves as Chairman of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, is garnering support to encourage Consumer Financial Protection Bureau (CFPB) Director Richard Cordray to postpone implementation of the new mortgage rules set to take effect in Jan. 2014, until Jan. 1, 2015. Noting financial institutions have 4,000 pages of new regulations to pore over, she says some smaller firms may only have one or two compliance officers, making it especially difficult for them to be in full compliance by the deadline. Included in the delay would be the HOEPA High Cost Mortgage Rules that impact manufactured housing. According to the Manufactured Housing Institute (MHI) newsletter to MHProNews, Cordray has made it known he does not want to forestall implementation of the mortgage rules.

(Image credit: HousingWire)

House Measure Requires Weather Radios in MH

July 20th, 2011 Comments off

The Birmingham News reports the House Financial Services Subcommittee unanimously passed a bill requiring all new manufactured homes to be equipped with a weather alert radio. Rep. Spencer Bachus (R-AL), chairman of the subcommittee, reminded committee members that 100 people in his district died during the April 27 tornado, although some were in site-built housing. Costs for the radio, which provide a continuous broadcast of local weather information, range from $11 to $45 each. The manufactured housing industry has opposed being singled out, but Bachus said it is comparable to a seat belt or smoke detector in terms of providing safety. The bill will now advance to the House floor.

(image courtesy wikimedia)