CFPB Refuses to Help At-Risk Homeowners and is Destroying Homeownership for Working People
(Boston, MA) On Tuesday March 12, the U.S. Senate Banking Committee should not confirm Richard Cordray as the Director of the Consumer Financial Protection Bureau (CFPB) until he has demonstrated he can do the job. In fact, over the past year as acting director he has created a bureaucratic agency that neither protects the consumer nor promotes affordable homeownership. The Neighborhood Assistance Corporation of America (NACA) and its more than two million members believe Mr. Cordray’ s actions at CFPB have not been pro-consumer and has over-regulated the mortgage industry resulting in the destruction of the dream of home ownership for working people.
Richard Corday’s excuse for not assisting one at-risk homeowner is that Congress prevents him from doing so. That was in response to the over 60,000 files NACA submitted to CFPB of homeowners who were denied a modification to make their mortgage affordable. Richard Corday has neither helped homeowners nor taken any action against a bank.
The regulations implemented by CFPB are the most outrageous example of over-regulation. The 3,000 pages regulating every aspect of the mortgage industry will effectively cut-off credit to most homebuyers. CFPB, with hundreds of lawyers with no mortgage experience has fallen far short of the hopes for an effective consumer agency. An example of their arrogance is the refusal to consider exceptions to the unintended consequences of their regulations which is standard practice for other regulators like the SEC (i.e. mortgages not considered a Qualified Mortgage but are beneficial to homebuyers).
Many Republicans are against Richard Cordray because they dislike the structure of the agency. All Americans should be against his confirmation at this time because he has not demonstrated a track record of protecting consumers from the lenders wrongful acts. “There should not be a rush to confirm Richard Cordray when hundreds of thousands of homeowners who have been denied a mortgage are waiting for him to take action against the lenders,” states Bruce Marks, NACA CEO. “Members of Congress should be outraged that Richard Cordray blames them for his failures in helping at-risk homeowners. This is the opportunity to hold Richard Cordray and CFPB accountable,” Marks said.
The President appointed Richard Cordray to protect consumers from the unchecked predatory lending ways of Wall Street. So far, Mr. Cordray has done absolutely nothing to hold lender’s responsible and protect homeowners. This Tuesday the Senate Banking Committee has an opportunity to change that by rejecting Mr. Cordray as Director of the CFPB.
For and CFPB also creates regulations and perceptions of consumer protection but there is no real consumer protection. This inaction is even more egregious since CFPB’s new mortgage servicing standards won’t take effect until January of 2014 thus doing nothing to protect the thousands of homeowners who are being foreclosed on every day.
In fact CFPB’s new servicing standards encourage lenders to accelerate the foreclosure process now without any consequences. “CFPB is providing mortgage servicers advance notice to do their dirty work before the new regulations go into effect”, states Bruce Marks, NACA Founder and CEO. “When the new servicing rules go into effect in 2014 the landscape will be very different with many more communities devastated due to CFPB’s failure as the consumer watchdog. When it comes to holding the banks accountable and providing assistance to consumers, CFPB has sat on the sidelines as a no show.” continued Mr. Marks.
NACA submitted the cases and requested a foreclosure moratorium due to the lack of real oversight and effective servicing regulation by CFPB.
About NACA (NACA.com)
NACA is the largest HUD certified counseling agency. It provides about 30% of the counseling in the country. It has more than two million members. NACA is the largest and most effective organization in modifying mortgages and provides the best mortgage in the country. NACA has been highlighted in the national news and its CEO Bruce Marks was named Bostonian of the Year for 2007 because of his work in getting the major lenders and servicers to modify home loans for borrowers who come through NACA. See Bostonian of the Year. He has also testified in congress on numerous occasions including on September 12, 2000, being one of the only people to sound the alarm of the pending mortgage crisis. For more information go to www.naca.com