With its fate hanging over, it is a good time to commemorate the Consumer Financial Protection Agency, which was caused by a subprime mortgage scam.
A loan broker told her that her mother could afford the house and her mother moved her young children out of coveted government-subsidized housing. Foreclosure occurs immediately.
A woman wants to buy a house, but she has a bad reputation. The agent mistakenly claimed the couple owned a hair salon by adding her unemployed daughter to the application. The broker filled out a business license at the town hall on their behalf.
A young couple from Colombia is happy to be able to buy a house. They didn’t realize that brokers’ monthly income at rental car agencies increased from $2,200 to $6,500 a month. The mortgage was missed very quickly.
As Boston Global Reporter, these and other stories I introduced have made people look like human beings for economic tragedy. An unprecedented subprime mortgage fraud has led to record foreclosures, which has delayed for many years and destroyed lives since 2007.
However, the Consumer Financial Protection Agency, created to prevent such abuse, is currently in a legal dilemma. The Trump administration has cuts against the agency, and the case where employees filed lawsuits are currently in court. On Monday, the judge stopped a prior order to stop staff at a March 10 hearing, although employees said some closed offices had not reopened under the government’s sustainment.
The financial industry has been operating under several different regulators since the Great Depression. Their job is to ensure that the company has sufficient capital and prevent bank failures as a form of consumer protection.
CFPB is different. It didn’t work from scratch. Watchdogs ensure the security of credit cards, mortgages, student loans and bank accounts that each of us needs to do our day-to-day business. The agency said it uploads more than 10,000 complaints from consumers to a complaint database every day.
Since 2012, CFPB enforcement actions have returned nearly $20 billion to consumers victimized by fraud and sloppy financial practices. The Center for Progress said the agency “has always been a strong advocate of everyday Americans.”
Last year, for example, the agency asked credit card companies to significantly reduce those high late fees and is investigating the recent rise in mortgage closing costs. The CFPB reports that it has returned $23 million to active service members, veterans and their families. It initiated cases on behalf of consumers for financial applications, student loan companies, major investment banks, obscure commercial banks, credit institutions and is a mortgage company. The action list is very long.
The government works for the people. That’s all about CFPB.
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