Why Trump’s Deregulation Domino Effect Could Have A Huge Impact On Your Investment Future

The Consumer Financial Protection Bureau, attacked since before it was born and facing a court challenge to its structure, may be dealt a death blow by the incoming Trump administration.

As an important consumer protection agency and the first domino in a line of regulatory agencies about to be pushed over by the deregulatory army heading to Washington, the CFPB needs to survive for the public good and your investment future.

I’ll be showing you how fixing it and not killing it can make regulatory regimes across the U.S. more effective, less intrusive and profitable for you.

Here’s the good, the bad and the ugly about the CFPB…

Fighting the Good Fight

Senator Elizabeth Warren (D-Mass.) has been constantly under attack over the Consumer Financial Protection Bureau ever since she was a law professor at Harvard University calling for the creation of the CFPB. She has continued to receive criticism in her role as Special Advisor for the CFPB when it was being written into the Dodd-Frank Act, and as the CFPB’s biggest cheerleader since her election as a Senator in 2013.

A lot of Republicans and deregulatory zealots have attacked Warren and the CFPB as examples of government overreach.

They’re not all wrong. There’s a lot about the CFPB that needs to be fixed, in spite of all the good the Bureau has done.

Born out of the financial crisis that imploded banks betting the wrong way on “no-doc” and “liar loans” in subprime mortgage-backed securities and other egregious big bank money-grabbing schemes, the CFPB (part of the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted 2010) set new standards for the mortgage market and establishes necessary consumer safeguards.

The Bureau’s new rules make it mandatory that lenders verify borrowers’ income and their ability to repay loans. Rules now make it harder to push exotic mortgages, including ones with “teaser” interest rates. Regulations are now in place simplifying the disclosures that borrowers receive when they take out a loan.

1 2 3 4
View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.