The financial and economic crisis of 2008 was in no small part the result of an out-of-control mortgage lending industry. New rules for that industry – rules developed by the Consumer Financial Protection Bureau (CFPB) under the Dodd-Frank financial reform law of 2010 – are now in effect. Their arrival is extremely good news for homeowners, aspiring homeowners, and the country as a whole.
“For too many years, dealers and advisors in the municipal market have felt free to give self-serving advice designed to generate more profits for them at the expense of their clients… Properly implemented, [today’s rule] should curtail the abuse and provide enormous benefits for taxpayers and investors.”
View or download PDF. “Former employees of the Securities and Exchange Commission (SEC) routinely help corporations try to influence SEC rulemaking, counter the agency’s investigations of suspected wrongdoing, soften the blow of SEC enforcement actions, block shareholder proposals, and win exemptions from federal law.”
A new report from the National Consumer Law Center analyzes the record of the government’s main mortgage modification initiative, and where we go from here.
With new rules for mortgage lending and servicing due to be issued soon, the Bureau faces an important opportunity to make the housing market work better for families and communities.
The Dodd-Frank Act sought to protect municipalities and taxpayers against exploitative Wall Street financing deals. Now there are moves afoot to take back some of that promised protection.