MFH News and Views: CFPB Dir. Rebuffs Sen. Corker Over Consumer Finance Protection Bureau Finance Rules
Called to task for crushing available financing on one of the more affordable forms of homeownership, CFPB Director Richard Cordray was grilled by Sen. Bob Corker over the negative ramifications of Dodd-Frank.
Always looking to help disseminate a good story when we see it, we at manufacturedhomes.com found the following press release more than a little interesting, “Twice each year the Consumer Finance Protection Bureau (CFPB) prepares a report on the state of the agency and its work on behalf of consumers. And twice in the past year, CFPB Director Richard Cordray has faced questions by Congressional oversight committees regarding agency rules that block the path to affordable homeownership for consumers of modest means.“
In prior meetings and after intense questioning, Cordray admitted to Sen. Bob Corker (R-Tenn.) there were unforeseen consequences which the bureau should reevaluate.
Asking what progress, if any, had been made since they last spoke, Sen Corker reminded Cordray of his testimony from the previous year before the Senate Banking Committee:
“Numbers of these people are unable to be served, and
they’re ending up paying more for rental housing than they
could for actually purchasing a lower-cost home.”
Cordray admitted “It’s a very real problem” that adversely affects the sales of manufactured homes, in addition to other forms of low-cost housing too.
“It’s not fair …” Sen. Joe Donnelly told the CFPB director. Explaining that, ordinary hard-working American families have a right to own their own piece of the American Dream. To which Cordray bristled, “And, by the way … not be gouged,” despite having just acknowledged moments before there “was not ever much high-cost lending in the manufactured housing market.”
Returning the Directors quip, Donnelly stood resolute. “In almost every case, I don’t think my local community banker is out to gouge anybody.”
Thousands of hardworking middle and lower income families are currently unable to realize the unique sense of security gained through homeownership, through absolutely no fault of their own.
Most of these otherwise qualified home buyers are unaware of the impact of the Dodd-Frank legislation on their opportunity to secure equitable financing to purchase that dream home. The rules of Dodd-Frank are a classic example of supposedly well-intended policy gone seriously sideways – all in the name of “consumer protection.”
MFH News/Views and other manufactured housing observers, including MH PRONEWS have continued to report on the inexplicable failure of CFPB director Richard Cordray to offer relief to the consumers who are paying the price of this misguided legislation, which blocks their path to homeownership. Cordray has the legal authority to make the necessary changes. No Congressional action is required!
The irony is that these consumer oppressive manufactured housing rules were never intended to be included in the Dodd-Frank legislation according to Barney Frank in a letter to a constituent. Cordray is aware of the inadvertent inclusion.
Director Cordray has not given any credible reasons to Congress why he has not fulfilled his responsibilities to serve consumers.
Is this another example of regulatory reform “stonewalling” that has become commonplace as the volume of new regulations has promulgated dramatically over the past few years? Difficult to draw any other conclusions.All
A growing number of Democrat and Republican lawmakers want to modify Dodd-Frank in ways that will end the harm caused by the current state of the CFPB regulations. Donald Trump, the presumptive Republican presidential nominee is calling for ending most of the Dodd-Frank law that created the CFPB. Contrast with Democratic frontrunner Hillary Clinton who supports the legislation as enacted.