The Consumer Financial Protection Bureau was established last year to revamp financial regulation on products such as home mortgages, title loans, credit cards and pay day loans. This is all headed up by Elizabeth Warren, a Harvard law professor.
Even though the bureau was fought by the powerful U. S. Chamber of Commerce, Warren is set to have the bureau up and running by July of this year.
Elizabeth Warren is seeking advice from many trade groups and consumer advocate groups across the country. She is seeking to regulate the product rather than type of lender. She is wanting level the playing field by focusing attention on unregulated consumer finance providers.
As a mortgage lender, I am hoping that by working with the financial industry, the bureau can bring common sense to our mortgage disclosure process. The new disclosure regulations are terrible. We are spending to much time on re-disclosure. This cannot be good for the consumer. I think national and state licensing is a pain, however, it has weeded out many bad lenders.
I have heard Elizabeth Warren speak and she wants disclosure on many consumer products to be simple for the average person to understand. It sounds noble. However, a mortgage is complicated. I am hoping the documentation will be easier for both the lender and the consumer.