Posts Tagged ‘judgment’

Is it Judgment Day for the CFPB?

May 24th, 2017 Comments off

What is the fate for the CFPB? Credit: Journal IE.

Today is a big day in the history of the Consumer Financial Protection Bureau (CFPB), as it heads to an appeals court in a case brought by PHH Corp.

That case could completely reshape the organization.

As Daily Business News readers are already aware, critics of the CFPB point to leadership structure, data collection and so-called “trophy wins” as issues that need to be addressed. A D.C. Circuit Court ruled that the CFPB was unconstitutional, in the legal action brought by PHH.

The court ruled that the CFPB’s structure was constitutionally flawed and that its director should be removable at the will of the president.

In advance of today’s hearing, the House Financial Services Committee, led by Chairman Jeb Hensarling (R-TX) debated the future of the Financial CHOICE Act during a hearing on April 26th.

Originally introduced by Hensarling in 2016, the CHOICE Act included a proposal to replace the CFPB with a five-member bipartisan commission that would be subject to congressional oversight and appropriations.


Jeb Hensarling. Credit:

The Financial CHOICE Act re-establishes this rogue agency as a civil enforcement agency, patterned after the Federal Trade Commission. One that is responsible for actually enforcing the enumerated consumer protection laws written by Congress, instead of making up its own law in an unfair, deceptive, and abusive manner,” said Hensarling.

True consumer protection is only to be had in competitive, transparent and innovative markets which are vigorously policed for fraud and deception. That’s what the Financial CHOICE Act is all about.”

And, both experts and other politicians had their say on the matter at the hearing.

The CFPB is an unaccountable federal agency, as exemplified in the case PHH Corp., et al. v. Consumer Financial Protection Bureau,” said Norbert Michel, senior research fellow, Financial Regulations and Monetary Policy Institute for Economic Freedom and Opportunity at The Heritage Foundation.


Credits: Flickr, CFPB, PHH.

The PHH incident is a clear-cut case of an unaccountable federal agency flouting the basic principles of the rule of law. Private firms—financial or otherwise—cannot safely operate in such an environment without the expectation of being wrongly persecuted by the government that is supposed to protect all of its citizens from such actions.”

Congress can do even better by consolidating the various consumer financial protection statutes under one existing federal agency, such as the [Federal Trade Commission.]

Another Texas Republican was more to the point.

The CFPB is one of the most unacceptable and unaccountable agencies in the United States,” said Rep. Roger Williams. “This is what Dodd-Frank gave us and that is why it is so important to fix this disastrous law.”


A View From the Other Side…


Senator Sherrod Brown. Official photo.

Recent motions filed by U.S. Senator Sherrod Brown (D-Ohio) and U.S. Rep. Maxine Waters (D-Calif.), argued that Congress wanted a single director for the agency, because lawmakers who drafted the Dodd-Frank Act, which established the CFPB,understood that the nation needed a regulator that could respond quickly and effectively to new threats to consumers … and it knew that the CFPB’s effectiveness could be hampered by the delay and gridlock to which commissions are susceptible.”

Sixteen state attorney generals and the District of Columbia also filed a motion, defending the CFPB in its current incarnation.

As the representatives of millions of citizens across the country, the state attorneys general have used their express statutory authority to bring civil actions to enforce consumer financial protection laws and to pursue regulatory actions in coordination with the CFPB to protect consumers against unfair, deceptive and abusive financial practices,” the motion said.


Representative Maxine Waters. Credit: Wikipedia

The current ruling, if permitted to stand, will undermine the power of the state attorneys general to effectively protect consumers against abuse in the consumer finance industry.” 


Could MHI Have Killed the CFPB? Another Opportunity Missed?

As we reported here, prior to the close of filings, MHProNews asked the Manufactured Housing Institute (MHI) if they would be filing an amicus brief in the closely followed PHH vs. CFPB case.

Several operations and organizations have been among those who filed an amicus brief in the case. Was MHI among those organizations?

MHProNews sources say no, and MHI won’t comment.


Frank Rolfe.

The folks at MHI – the industry lobby group – are nice people, but what’s with the concept of silence is golden? Negative articles on the industry are met with ‘no comment.’ Positive news opportunities are met with ‘no comment.’ I’ve never seen anything like it,” says Frank Rolfe.

When you refuse to talkit looks to the public like an admission of guilt, and when you refuse to promote your product it looks like you are embarrassed by it.”

Silence, according to Rolfe, isn’t golden.

The appearance, per Rolfe, is that someone – in this case, MHI – is hiding something.


The View From the MH Industry


A tweet from Senator Bob Sasse.

While the CFPB had the support of the Obama Administration, the Trump Administration has had the organization in its crosshairs since the election.

Those in the industry have not been shy about their feelings on the matter.

The information on this case also has indirect ramifications for the Manufactured Housing Institute (MHI), and others in the industry, as the Preserving Access bill is being floated, which would modify portions of Dodd-Frank.

For more on what the Preserving Access bill means for the industry, check out the latest article on The Masthead.


The Daily Business News will continue to follow the hearing and provide updates.

For more on the CFPB’s impact on the manufactured housing industry, click here. ##


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



RC Williams, MHProNews.

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


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Rent Control Set to Expire

June 3rd, 2013 Comments off

According to, rent controls for the 46 low or moderate-income residents of Tricia Meadows manufactured housing community in Mount Laurel, NJ will expire at the end of the year and become market rate like the other homes in the 400 site community. Built in 1984 by developer Roger Davis and named for his daughter Patricia, site rents will double for those who live in the affordable housing units under a judgment reached with the New Jersey court system 30 years ago. Kevin D. Walsh, of advocacy organization Fair Share Housing Center, says the township could tap into its $6 million Affordable Housing Trust funds, but as MHProNews has learned, Mount Laurel Mayor Linda Bobo says those funds have already been allocated.

(Photo credit: Triangle MHC)

Abandoned Homes Continuing to Hold Back the Market?

April 24th, 2013 Comments off

According to nationalmortgagenews, banks are the ones walking away from vacant homes these days, starting but not completing the foreclosure process because they do not want the responsibility for maintaining the property, resulting in hundreds of thousands of homes being withheld from the market. In some cases, homeowners who have already left the property are being hit with back taxes, repairs, insurance and unpaid debt. Thomas Fitzpatrick, an economist in the community development department at the Federal Reserve Bank of Cleveland, states “We’re seeing more and more, banks getting a judgment to sell a home but not taking it to a foreclosure sale. It may cost more to cure the back taxes and bring the property up to code than they could ever get from selling the property itself.” Data from RealtyTrac indicates 35 percent of the roughly one million homes in the foreclosure pipeline are abandoned and the servicer has not taken title to the property. Last year the Federal Reserve issued directives requiring servicers to notify borrowers and municipalities when they decide not to pursue foreclosure, but no time line was given and enforcement can be difficult. MHProNews has learned this may be contributing to the increase in prices on existing homes. Says Ruhi Maker, a senior staff attorney at the nonprofit Empire Justice Center in Rochester, N.Y. “I have long been convinced that the current run up in home prices is a false high. Once all these foreclosures are through the system we could see another decline in prices.”

(Image credit: condometropolis)

Florida Community Acquired from Bank

April 8th, 2013 Comments off

The heraldtribune reports MHC Mermaid’s Manor in Bradenton, Fla. has been acquired out of foreclosure by trusts in the name of Harold E. Crye and Hazel Ann Ball for $1.2 million, from BOFI Federal Bank. The 70-site Mermaid’s was previously owned by Tampa’s CPM Properties LLC, managed by Harvey Estes, which paid $1.61 million for the property in Dec. 2007, but lost it in a $1.356 million foreclosure judgment last Sept. listed the community as closed, MHProNews has discovered, although no dates are given.

(Dustin Franz/athensnews–manufactured housing community)

Water is Clear, Legalities could get Muddy

March 7th, 2013 Comments off

Updating a story MHProNews posted Jan. 14, 2013 about residents of Killam Properties, Inc.’s Mountain View Estates MHC at Lake Echo, Nova Scotia, Canada having to boil their water (or buy it bottled) for 14 months, it is now safe to drink for the 300 families who live there. One tenant, Bruce Baillie, took his complaint to the residential tenancy board, saying it was a violation of his lease, and won a judgment of $660.81 against Killam. The company is appealing the case, saying it only costs $19 a year to boil water for 20 minutes a day, not the $2 a day that was awarded, according to senior property manager Michael Kabalen. Killam has spent $300,000 for four new wells that began working Feb. 8. CBC.CA reports if all the tenants were paid the same as Baillie–others are considering filing a complaint– it would cost the company $280,000.

(Photo credit: Wikipedia)

Mass.’ Peters Pond on Sun’s Buy List

December 24th, 2012 Comments off

Updating a story we ran Dec. 12, 2012 concerning Sun Communities, Inc.’s acquisition of 11 Morgan RV Resorts for $135 million, one of the properties is Peters Pond RV Resort in Sandwich, Mass. which has had some recent troubled times. Cape Cod Times tells MHProNews Morgan’s principal, Robert Moser, and the company were allegedly using harassment tactics in forcing residents to sign up for a membership. The Mass. Attorney General sued Morgan RV for failing to repay $446,785 to nearly 80 residents; Morgan has subsequently appealed that judgment. On 73.4 acres, Peters Pond is valued at $8.1 million. It is not known what effect the acquisition by Sun will have on the case.

(Photo credit: Cape Cod Times–Peters Pond)

It’s Auction Block for Crumbling MHC

June 7th, 2012 Comments off

AthensNews tells from Ohio many of the factory-built homes in the Pine Aire MHC in Athens have been abandoned and vandalized following the storm that tore through it nearly two years ago, and now that the community is in foreclosure for back taxes, there is no one to do the management end. An Athens County Common Pleas Court issued a default judgment against owner Ray Croxford in April for $170,000 for three different parcels including Pine Aire. Athens County Prosecutor Keller Blackburn said the situation is complicated by the lack of proper lease records for the homesites, but the 42 sites will be auctioned June 27 based solely on the back taxes, sheriff’s fees, and court costs of $152,363. The remaining residents, mostly elderly on fixed incomes, are mowing their own lawns and uncertain as to when they might have to move their homes, some of which will present a definite challenge.

(Photo credit: AthensNews/Dustin Franz)

Zoning Change to Restrict MH

December 26th, 2011 Comments off

The Mount Vernon, Illinois, Zoning and Planning Commission is considering an ordinance change     that restricts manufactured housing to communities, instead of conditional permit zoning. The Register-News tells that Mt. Vernon City Councilman David Wood says, “We’re trying to get away from spot zoning,” Wood said. “The way the ordinance is drafted, anyone can apply for a mobile home (sic) in almost any neighborhood in residential zoning. That leaves it up to the zoning commission to determine if a mobile home will go in neighborhood A, B or C. The judgment calls change with the makeup of the commission.” City Manager Rod Neibert says the existing factory-built homes will be grandfathered in, but if one is moved or damaged it will not be replaced by another one. The ordinance does not affect modular homes. The commission will consider the ordinance at its Jan. 9 meeting.

(Graphic credit: Yahoo!/NAVTEQ)