Congress – Do Your Job and End the CFPB

by: Brent Smith at the Common Constitutionalist

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The Consumer Financial Protection Bureau (CFPB) was created out of the disaster that is Dodd-Frank. Mark Levin claims it is unconstitutional. And if he says it is – it is. It clearly violates the separation of powers in the Constitution.

In fact, in 2016, the DC Circuit Court of Appeals ruled that the mere structure of the CFPB violates Article II of the Constitution, as it gives broad, unchecked authority to a single individual – the director of the Bureau. Writing the majority opinion, Judge Brett Kavanaugh wrote that, “When the CFPB was established, it was structured to be headed by a single director rather than a multi-member commission. The director wields ‘enormous power,’ with the power to enforce 19 federal consumer protection statutes. The director can alone decide what rules to issue, how to enforce the laws, and what sanctions to impose.”

“No head of an independent agency has operated without a check on his or her authority—until now,” added Kavanaugh. It makes the director, radical leftists Richard Cordray, “In essence, the President of Consumer Finance,” and “the single most powerful official in the entire U.S. government, other than the president.” read more

Shut Down the CFPB – Save the $650 Million

from IBD:

Like so many bureaucracies, the Obama-era Consumer Financial Protection Bureau, a creation of the Dodd-Frank financial reform bill, began with the very best of intentions. But it has failed to do its job. Following the resignation of CFPB chief Richard Cordray, it’s a good time to consider shutting down the agency altogether.

CFPB is often mischaracterized as a “consumer watchdog” in the mainstream media. Consumer attack dog is more like it.

Set up to protect consumers from predatory lenders and rogue banks, the CFPB has in fact led to less credit for financially troubled Americans, and is arguably not even legal. And no, that’s not just our opinion.

An October 2016 Supreme Court ruling found CFPB’s structure to be unconstitutional, a violation of the separation of powers in the nation’s supreme law. read more

Dodd-Frank Will Rescue Us From Pay Day Lenders

By: the Common Constitutionalist

Short term or “Pay Day” loans have really drawn the ire of the peoples’ president, Barack Obama. So devastating are these loans to the poor and otherwise less fortunate, that Dodd-Frank, the gift that keeps giving, created another useful and desperately needed government agency – the Consumer Financial Protection Bureau (CFPB).

The LA Times reported that this began the “first federal oversight of payday lenders in 2012 amid strong criticism of the industry from fair lending and public interest groups.”

Well, I guess my work here is done and my article complete. I mean – the feds created a new bureaucracy to monitor and deal with evil, predatory Pay Day lenders, so – problem solved. Let’s move on to the next crisis.

Oh – it’s not? Let’s continue then.

Pay Day lenders are none too happy with our president – who’s just looking out for the folks and preventing lenders from laying on the “okie doke” to unsuspecting consumers. The Times claims that the “payday loan industry has argued that the loans are an important financial bridge for some consumers and that regulations should not be too onerous.” Just onerous enough I suppose. read more

A Tantamount Admission

by: the Common Constitutionalist

It’s not often a government, any government, admits how incompetent it’s been for so many years, but the Consumer Financial Protection Bureau (CFPB) has done just that. They have also, unwittingly, laid out the argument against government interference and intervention in the engine of America, the private sector marketplace.

The AP recently reported, “Federal regulators for the first time are laying out rules aimed at ensuring that mortgage borrowers can afford to repay the loans they take out. The rules unveiled Thursday by the Consumer Financial Protection Bureau impose a range of reformobligations and restrictions on lenders, including bans on the risky ‘interest only’ and ‘no documentation’ loans that helped inflate the housing bubble.”

“Lenders will be required to verify and inspect borrowers financial records. The results discourage them from saddling borrowers with total debt payments totaling more than 43% of the persons annual income. That includes existing debts like credit cards and student loans.”

“CFPB director Richard Cordray, in remarks prepared for the event Thursday, called the rules, ‘the true essence of responsible lending’.”

So you may ask yourself; self, if this is the first time they (the government) have insisted on these “new” rules, what have they been doing all these years?

Have the feds simply had a “hands-off” approach regarding lenders? Is that the reason for the mortgage crisis and subsequent meltdown?

For all these years the federal government has stood by and allowed evil “big banks” to use predatory lending practices to prey on the innocent and unsuspecting homebuyer.

Well, that’s not exactly how things have been. As a matter of fact, it’s pretty much the polar opposite of what I just described.

CRAInterventionalist “Nanny” government policy always begins with progressive administrations. Thus it was with Jimmy Carter. Jimmy Carter’s is the administration that gave us the “Community Reinvestment Act” (CRA).

As progressives are always wanting, Carter’s plan was, through the force of government, to provide “affordable housing” to those he deemed less fortunate. According to progressives, the government is both arbiter of what is fair and can always fix any problem. And you see, it’s simply not fair to deny people the right to affordable housing. Progressives are all about fairness, ya know.

As one would expect, during the Reagan years, Carter’s grand plan just languished in the shadows. It wasn’t until the progressive Clinton administration that the CRA got legs. Actually, more like wings or a jet pack.

Clinton rediscovered Carter’s plan and pumped it full of steroids. Through the power of his Justice Department and his stooge Janet Reno, he forced banks to offer mortgages to those who could not afford to purchase a home, nor had a prayer of paying back the loan.

Reno threatened banks with regulations and stiff penalties, to make these loans, so the banks, in turn, were forced to come up with ways to make the mortgages more palatable, such as “interest only” and “no documentation” loans. If one were of a “preferred” class, one would not even have to prove he or she was employed.CRA1

All this, so the Clinton administration could show the voters how, under Bubba”s rule, the American dream of owning a home could be realized.

So where did that leave the banks? In a mighty tough spot!

The government forced them to make loans and thus they got stuck with a lot of worthless mortgages from people who couldn’t pay them.

Well, the banks could not just sit on this worthless investment. So with the aid of the corrupt quasi-government run Fannie Mae and Freddie Mac, the banks packaged the loans together and called them “Mortgage Backed Securities” (MBS).

The banks then sold these “investments” to unsuspecting buyers who thought they would have a nice steady and stable income stream. Of course the buyers were wrong and upon discovering they had been duped, they simply repackaged the MBS’s and resold them. Eventually the scheme ran its course and there were no dupes left for whom to sell.

During this time the George W Bush administration tried to clamp down on Freddie, Fannie and the banks, but were descended upon by powerful Democrats such as Barney Frank, Chris Dodd and Maxine Waters. The dems claimed that all was well and those chris dodd barney franktrying to solve the problem and stop the easy money practice just wanted to deny minorities the American dream, homeownership.

That, in a nutshell, was the cause of the housing crisis and subsequent financial meltdown that continues to plague us. All those hundreds of billions of dollars (if not more) in bank bailouts are due to an activist government playing favorites with our money.

As an aside, if you, like me, had to endure an anal exam to purchase a home during that same, easy money era, you can be sure you were not of the favored class. You were most likely employed, not on welfare or collecting food stamps, as many were who received these government mandated loans.

So now, as they always do, the government wizards of smart have stepped in to attempt to remedy a problem they themselves caused.

Although they most certainly don’t realize it, at least this time our government has admitted it was the cause of our country’s financial meltdown.