CFPB takes middle ground
The launch of the Consumer Financial Protection Bureau was one of the big regulatory and compliance stories of last year.
Mandated by Dodd-Frank, the bureau has been wrapped in controversy from the get-go. But after significant political maneuvering that scotched Elizabeth Warren's chances of becoming the inaugural head, the bureau finally creaked to life amid great fears that it would prove to be overly activist.
Politico reports, however, that the bureau has in fact steered a middle ground.
"A review of the agency's record shows that far from being a regulator unchained, the CFPB has taken the middle course in many of its decisions, even at times disappointing the consumer advocates who heralded its creation."
Some examples are that, "last year the agency backed off issuing a highly anticipated 'ability-to-repay' mortgage rule at the urging of lenders to get more feedback. The final rule will be released this month and there are strong indications the CFPB will include some of the 'qualified mortgage' legal protections banks have sought and consumer advocates oppose. Also, after banks complained that a new money transfer rule was unworkable, the CFPB opened it back up for comment in December and said it would make some changes."
There's little doubt that the bureau will remain a favorite target of anti-regulatory lawmakers in a highly charged political climate. The lobbyists will make a lot of money off of it. I can only hope the bureau continues to steer a middle ground.
- here's the article