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HR 3126

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.  


  1. “FDIC Chief says parts of regulatory plan won’t fly.” By Daniel Wagner, AP Business Writer.  8/14/09. URL:
  2. “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:
  3. “Bernanke Tells Senate New Agency Isn’t Needed.” By The Associated Press. 7/22/09.  URL:
  4. In Appraisal Shift, Lenders Gain Power and Critics. By David Streitfeld for The NYTimes 8/18/09
  5. “Mark-to-Market Investigation.” By Coleen Martinez, STOP! Mortgage Servicers. 8/12/09. URL:

2 Responses to “HR 3126”

  1. Steve0 said

    While this is all good in theory,
    in practice it is a terrible idea. If recent legilstature has showed us anything its that when the federal government tried to get involved in an industry to protect us as consumers it ultimately hurts us as consumers more than it helps. Dont believe it, just look at HVCC and HERA, talk about a complete train wreck. So far all these bills have done is restrict lending, hurt the wholesale lending channel and costs consumers thousands of dollars more in higher fees and rates due to the additional inherent risk imposed on the lending sector. I know that right now everyone thinks that all brokers are evil, but it was not only the brokers that created this. In fact the least of the blame would fall on the brokers. Mortgage brokers make no lending decisions, do not underwrite loans, and certainly did not create all the exotic financial and mortgage products. The only ones who did all those things and made any funding decisions were none other than the big banks. The same banks that are all screwing you today. As a broker from 2001-2006 you were courted every day by the bank reps pushing their crappy loan products, they spent thousands of dollars to push brokers into sending files knowing that the files were no good to begin with. They did not care if you can ever pay back the loan, why? Because wall street said they would buy their crappy loans. This bill is nothing but a closer step to eliminating brokers and wholesale lending, costing thousands of jobs to be lost and resulting in thousands more in costs to consumers. What do you think will happen when the only channel for mortgage lending is the big banks themselves? You are all fools if you think that is what will help protect consumers. SAY NO TO THIS BILL and its marxist principals, any bill that gives authority to eliminate an entire sector of any industry is not a good bill. I say to hell with this. I agree that we as consumers need something to govern the banks and their billing and servicing practices this simply is not that bill.

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