NAIHP Calling For The Resignation Of CFPB Deputy Chief Raj Date

Yesterday I wrote a blog titled "Stupid Is, As Stupid Does, And There Is No Fixing It"  which centered on recent proposals, and decisions being made by the the Consumer Financial Protection Bureau (CFPB).  Well it looks like Marc Savitt, president of the National Association of Independent Housing Professionals (NAIHP), has decided that if "You Can't Fix Stupid", than get rid of people who are responsible for the stupid proposals, and decisions.   To start with the NAIHP Calling For The Resignation Of CFPB Deputy Chief Raj Date.

The straw that finally led to the NAIHP taking this action was an accusation that Date made earlier in the year at an American Bankers Association Conference, which he stated that:

"most problematic vintages of mortgages during the bubble most of those problematic mortgages were originated not by supervised banks, but by mortgage brokers and finance companies,” 

It seems that Mr. Date has conveniently forgot the roll that banks like Bank Of America played in the mortgage mess.  Mr. Date's convenient memory loss might be because Mr. Date worked for banks before he became Deputy Chief of the CFPB.  It also may explain why the CFPB is not asking for Bank Loan Originators to meet the same licensing requirements as Loan Originators for Non Depository Lenders.

The NAIHP is "infuriated" by Date's statement and called it "outrageous".  NAIHP feels that because of Mr. Date's background, he has a preconceived bias against Mortgage Brokers, and therefore "the wrong guy for the job".  

The statement above is not the only accusation that Date has made against Non Depository Lenders, and more specifically Mortgage Brokers.  Date is also on record as stating that:

"If a borrower could qualify for a loan at, say, 6 percent, a broker might juice that rate from 6 percent up to 8 percent,” he said. “As a result, the most important, most visible person in the mortgage process for many borrowers – the mortgage broker – had a financial stake that was confusingly and perversely in direct opposition to the interest of the consumer himself. If people are paid to treat customers poorly, it shouldn’t be surprising when they do.”

There are three major problems that I see that are being created by Mr Dates bias.

• First he is making blanket industry wide accusations that he has failed to provide proof for.
• Second, his bias is leading to proposals of rule changes and guidelines that are based on his bias and accusations.
  
• Third, because he says it, people believe it because of his position, even though the statements are without proof, and very likely faults.

It is about time that someone starts to hold those like Raj Date accountable for their accusations, especially since they are leading Agencies that are suppose to be about accountability.  If Mr. Date cannot backup his statements with proof than I feel that the NAIHP Calling For The Resignation Of CFPB Deputy Chief Raj Date is justified.

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George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com