Posted by CM on August 20, 2009
H.R. 3126, The Consumer Financial Protection Agency, Click Here for PDF
This bill is 229 pages long. I don’t expect you to read it, I just skimmed it. We don’t need to read it to understand what it is. This bill will protect us from our mortgage servicers. When we need to complain, the CFPA is where we will go. When we need to find out if our mortgage servicers are abiding by industry standards and/or the law, the CFPA will guide our search. The CFPA probably will not solve all of our problems but it is a good step in the right direction and it shows that the Obama Administration is thinking about our plights.
I really urge you all to visit Denise Richardson’s site often. She has a wealth of information there. I just read another true story about a couple in Missouri “who find themselves at their wits end after exhaustive attempts to have their mortgage servicing company stop charging them for unnecessary forced place insurance, pyramiding un-due late fees and destroying their credit have all failed.” Ms. Richardson’s title for the post is “Why We Need a Consumer Financial Protection Agency.2”
In an earlier post, I made note that the Federal Reserve Chairman, Ben Bernanke is against the CFPA3. Well, the Chairwoman of the FDIC (Federal Deposit and Insurance Corporation), Sheila Bair, is also against the CFPA1. If you are like me, you probably don’t care what these Wall Street people think anymore. I just find it hard to trust these financial wizards these days. Since the market imploded in 2008, Wall Street has expanded the Mark-to-Market rule so that banks can use any excuse they want to value their assets as they see fit5. I just learned that now only lenders are allowed to order appraisals and ethical appraisers say they have lost all of their business4. Finally, it seems that Wall Street doesn’t want the CFPA. Gee, I wonder why. I guess that anything that benefits the consumer is seen as a negative for Wall Street. The more I see of the Wall Street Wizards trying to stop the CFPA, the more I want to make sure that H.R. 3126 gets passed.
- “FDIC Chief says parts of regulatory plan won’t fly.” By Daniel Wagner, AP Business Writer. 8/14/09. URL: http://hosted.ap.org/dynamic/stories/U/US_FINANCIAL_OVERHAUL?SITE=SCAND&SECTION=HOME&TEMPLATE=DEFAULT
- “If You Want Financial Reform and Accountability, Tell Congress to Support HR 3126.” By Denise Richardson, Give Me Back My Credit. 8/3/09. URL: http://www.givemebackmycredit.com/blog/2009/08/if-you-want-financial-reform-a-1.html
- “Bernanke Tells Senate New Agency Isn’t Needed.” By The Associated Press. 7/22/09. URL: http://www.nytimes.com/2009/07/23/business/economy/23bernanke.html?_r=1
- In Appraisal Shift, Lenders Gain Power and Critics. By David Streitfeld for The NYTimes 8/18/09
- “Mark-to-Market Investigation.” By Coleen Martinez, STOP! Mortgage Servicers. 8/12/09. URL: http://www.stopmortgageservicers.org/?p=90