One Step Closer to a Consumer Financial Protection Agency
We're getting more details on the Obama administration's proposed Consumer Financial Protection Agency. According to proposed legislation the Treasury Department sent to Capitol Hill yesterday, this big, new federal umbrella would cover a lot of services that touch homeowners and buyers directly. It would become a one-stop shop to regulate mortgage lenders, replacing the patchwork of federal and state regulators that now cover the lending industry. The agency could issue guidelines for "standard" mortgages that don't have prepayment penalties or other traps that have caused trouble for many borrowers.
The new agency also could impose a duty on mortgage brokers to offer appropriate mortgages to customers. It could ban the controversial "yield-spread premiums" -- a fancy phrase for extra fees -- paid to mortgage brokers who encourage borrowers to take out loans with higher interest rates.
The new agency would regulate real estate settlement services and companies that issue credit reports and scores, possibly requiring more disclosure to consumers about the information that influences those scores.
What are the most serious consumer problems that you think should be tackled by a Consumer Financial Protection Agency, if Congress decides to create one?
Posted by: foxwhite1 | July 1, 2009 7:34 AM | Report abuse
Posted by: foxwhite1 | July 1, 2009 7:53 AM | Report abuse
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