CFPB On New Mission To Study Compliance Costs

With many lenders reporting unsustainable costs of compliance due to regulations approved and enforced by the Consumer Financial Protection Bureau, the agency is now saying it wants to hear about those costs. 

In a blog post published last week, the CFPB says its research teams are working to determine just how much it costs for companies to comply with rules it has inherited from other agencies. 

“We want to increase public understanding of compliance costs,” the post states. “As a first step, we will talk to banks across the country about the costs they incur to comply with consumer regulations for deposit products and services. These include products like checking accounts and debit cards, which nearly all banks offer and most consumers use.”

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The initiative comes following ongoing dialogue among reverse mortgage lenders and other financial services providers who have stated the costs of compliance are in some cases, causing irreparable damage to independent business and causing undue hardship. 

The CFPB says it will consider those costs along with the benefits consumers receive from the new regulations to become “better and smarter regulators.” 

View the blog post.

Written by Elizabeth Ecker

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  • OK, they reasoned. We have caused a big stir in the reverse mortgage segment and other mortgage segments. Now, let’s see if we can keep going with some research on how much of a stir we made and how much it costs those we regulate. Then, let’s regulate the regulations to reduce cost to the lenders, if possible. Isn’t that what Dodd-Frank is about? Let’s not worry about prospect borrowers who we serve. They won’t be interested in getting any mortgage. It won’t be worth the trouble to them, so we won’t bother interviewing borrowers to see how many of them quit looking for a mortgage when we made it impossible to get. It is the regulators dream — stop the presses — there is no more mortgages to regulate. Now, we can create a new role for ourselves. But wait, what else can we regulate if not mortgages? With a stagnant economy, there’s not much going on to regulate. What is a regulator to do when the machine stops running? I know, we’ll do a study of the economy that drives mortgages. There’s bound to be more regulation to regulate.

  • The CFPB says it will consider those costs along with the benefits consumers receive from the new regulations to become “better and smarter regulators.” (Could it be possible that the CFPB is now admitting they made a “dumber” and “worse” adjustment in the regulations???) But, that’s too easy. Let’s not start confessions now. Let’s keep it going while people are listening to us.

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