What is happening in Egypt and abroad is important. This week I want to spend a little time on the new Consumer Financial Protection Bureau that will be launched on July 10th of this year run by Elizabeth Warren.
I will never understand why we have to create a new agency to regulate the mortgage industry and derivatives market when the administration will not even take the time to address Fannie Mae, Freddie Mac, and the GSE’s where all the crisis began. But I digress for a moment.
The Frank-Dodd Financial Overhaul Bill not only launches new regulation on the derivatives and the mortgage industry but it creates the new agency called the Consumer Financial Protection Bureau. Clea Benson from Bloomsberg Business Week descibes a potential outcome of this new agency :
“FiSCA’s members, largely regulated at the state level until now, handle about $106 billion a year in transactions for more than 30 million customers and are hoping to take even more market share from traditional banks. The new consumer agency, which has the power to write rules that would mandate repayment terms and force disclosures of loan costs, may determine whether they succeed or fail. Ed D’Alessio, general counsel for FiSCA, says the move to Washington was “necessary to meet the increased level of regulation that’s coming down the pike.”
While the Dodd-Frank law established the broad outlines of a new regulatory landscape, federal agencies are now writing at least 330 new rules governing everything from derivatives trading to the mortgage industry. Decisions being made at the Securities and Exchange Commission, the Federal Reserve, and other agencies will not just ordain how companies must act. They’ll also determine which ones are dealt into moneymaking opportunities created by Dodd-Frank—and which are shut out.”
I am more concerned about about the unintended consequences of all of the new regulation on the end user. What could happen to the homebuyers when they buy or sell property under all of the new regulation? This past week I found an article by Ric Thom from Note Investor, it was an interesting read http://noteinvestor.com/sellers-corner/dodd-frank-hijacks-owner-financing/
Continue to educate each other.
The rest of the research, review, and news on this subject can be found here at
To Your Health,