This article will be permanently flagged as inappropriate and made unaccessible to everyone. Are you certain this article is inappropriate? Excessive Violence Sexual Content Political / Social
Email Address:
Article Id: WHEBN0030814208 Reproduction Date:
The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. Its jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, other financial companies operating in the United States, and virtual currencies.
The CFPB's creation was authorized by the Dodd–Frank Wall Street Reform and Consumer Protection Act, whose passage in 2010 was a legislative response to the financial crisis of 2007–08 and the subsequent Great Recession.[3]
According to Director Richard Cordray, the Bureau's most pressing concerns are mortgages, credit cards and student loans.[3][4] It was designed to consolidate employees and responsibilities from a number of other federal regulatory bodies, including the Federal Reserve, the Federal Trade Commission, the Federal Deposit Insurance Corporation, the National Credit Union Administration and even the Department of Housing and Urban Development.[5] The bureau is an independent unit located inside and funded by the United States Federal Reserve, with interim affiliation with the U.S. Treasury Department. It writes and enforces rules for financial institutions, examines both bank and non-bank financial institutions, monitors and reports on markets, as well as collects and tracks consumer complaints.[4] Furthermore, as required under Dodd-Frank and outlined in the 2013 CFPB-State Supervisory Coordination Framework, the CFPB works closely with state regulators in coordinating supervision and enforcement activities.[6]
The CFPB opened its website in early February 2011 to accept suggestions from consumers via YouTube, Twitter, and its own website interface. According to the United States Treasury Department, the bureau is tasked with the responsibility to "promote fairness and transparency for mortgages, credit cards, and other consumer financial products and services".[7] According to its web site, the CFPB's "central mission...is to make markets for consumer financial products and services work for Americans—whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products".[8]
In July 2010, Congress passed the
On August 22, 2013, one month after Morgan Drexen's lawsuit, the CFPB filed its own lawsuit against Morgan Drexen in the Telemarketing Sales Rule (TSR) and engaged in deceptive acts and practices in violation of the Consumer Financial Protection Act (CFPA)[41]
A lawsuit filed July 22, 2013, by Morgan Drexen Integrated Systems, a provider of outsourced administrative support services to attorneys, and Connecticut attorney Kimberly A. Pisinski, challenged the constitutionality of the CFPB.[37][38] The complaint, filed in the U.S. District Court for the District of Columbia, alleged that the "CFPB's structure insulates it from political accountability and internal checks and balances in violation of the United States Constitution. Unbridled from constitutionally-required accountability, CFPB has engaged in ultra vires and abusive practices, including attempts to regulate the practice of law (a function reserved for state bars), attempts to collect attorney-client protected material, and overreaching demands for, and mining of, personal financial information of American citizens, which has prompted a Government Accountability Office ("GAO") investigation, commenced on July 12, 2013."[39] That October, this case was dismissed by a D.C. Federal Court.[40]
A lawsuit filed in June 21, 2012, by a Texan bank along with the Competitive Enterprise Institute, challenged the constitutionality of provisions of the CFPB.[35] One year later, in August 2013, a federal judge dismissed the lawsuit because the plaintiffs had failed to show that they had suffered harm.[36]
Democratic Republican
The CFPB has also attempted to help consumers understand virtual currencies such as Bitcoin.[34]
The CFPB has created a number of personal finance tools for consumers, including Ask CFPB, which compiles plain-language answers to personal finance questions, and Paying for College, which estimates the cost of attending specific universities based on the financial aid offers a student has received.[32][33]
The CFPB is weighing whether it should take on a role in helping Americans manage retirement savings and regulate savings plans, particularly focusing on investment scams that target the retired and elderly. "That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have”, bureau director Richard Cordray said in a January 2013 interview.[29] Some conservatives have been critical of this potential role, with William Tucker of the American Media Institute asserting that the agency intends to "control" retirement savings and force people to buy federal debt.[30] The AARP has encouraged the agency to take an active role, arguing that the bureau will help protect elderly Americans from affinity fraud that often targets senior citizens, ensuring that their investments are less likely to be stolen through securities fraud or malpractice.[31]
Appendix Q relates to the debt-to-income ratio that must be possessed for "qualified mortgages" and provides details about how to determine the factors for that calculation. The standard is set at no more than 43 percent.
Regulatory implementation regarding mortgages is covered on the bureau website. Topics provided for consumers include, 2013 mortgage rule implementation, resources to help people comply, quick reference charts, supervision and examination materials, and a link for feedback. It also provides additional information that covers rural or under-served counties, HUD-approved housing counselors, and Appendix Q.[28]
On September 26, 2013, the Consumer Financial Protection Safety and Soundness Improvement Act of 2013 (H.R. 3193; 113th Congress) was introduced into the United States House of Representatives.[25] If passed, the bill would modify the CFPB by transforming it into a five person commission and removing it from the Federal Reserve System.[26] The CFPB would be renamed the "Financial Product Safety Commission". This bill is also intended to make it easier to override the decisions that the CFPB makes. On February 7, 2014, House Majority Leader Eric Cantor announced that H.R. 3193 would be on the House schedule for February 11 or 12, 2014.[27]
On July 11, 2013, the CFPB Rural Designation Petition and Correction Act (H.R. 2672; 113th Congress) was introduced into the House of Representatives. The bill would amend the Dodd–Frank Wall Street Reform and Consumer Protection Act to direct the CFPB to establish an application process that would allow a person to get their county designated as "rural" for purposes of a federal consumer financial law.[22] One practical effect of having a county designated "rural" is that people can qualify for some types of mortgages by getting them exempted from the CFPB's qualified mortgage rule.[23][24]
On July 16, 2013, the Senate confirmed Richard Cordray as director in a 66–34 vote.[21]
The constitutionality of Cordray's recess appointment came into question due to a January 2013 ruling by the United States Court of Appeals for the District of Columbia Circuit that Obama's appointment of three members to the NLRB (at the same time as Cordray) violated the Constitution.[20]
On January 4, 2012, Barack Obama issued a recess appointment to install Cordray as director through the end of 2013; this was highly controversial move as the Senate was technically in pro-forma session, and the possibility existed that the appointment could be challenged in court.[19]
On July 21, Senator Richard Shelby wrote an op‑ed for the Wall Street Journal affirming continued opposition to a centralized structure, noting that both the Securities Exchange Commission and Federal Deposit Insurance Corporation had executive boards and that the CFPB should be no different. He noted lessons learned from experiences with Fannie Mae and Freddie Mac as support for his argument.[17] Politico interpreted Shelby's statements as saying that Cordray's nomination was "dead on arrival".[18] Republican threats of a filibuster in the Senate to block the nomination in December 2011 led to Senate inaction.
[12] from 2009 to 2011, Cordray won $2 billion in settlements from financial companies.Ohio Attorney General As [13] who prior to the nomination had been hired as chief of enforcement for the agency.[12],Richard Cordray The bureau began operation on July 21, 2011, shortly after Obama announced that Warren would be passed over as Director in favor of [11] On September 17, Obama announced the appointment of Warren as Special Advisor to set up the bureau.[10]
Puerto Rico, Philadelphia, Virginia, /e Washington, United States
Great Depression, Bank regulation in the United States, Franklin D. Roosevelt, Insolvency, Insurance
Australia, South Korea, India, Subprime mortgage crisis, China
Barack Obama, University of Oxford, Jeopardy!, Franklin County, Ohio, Ohio House of Representatives
Consumer Financial Protection Bureau, Public domain, Barack Obama, 113th United States Congress, Federal Reserve System
Consumer Financial Protection Bureau, United States Congress, /anization Representing The Nation's Federal
Federal Deposit Insurance Corporation, Bank Secrecy Act, Money laundering, Oclc, Federal Reserve Board
Barack Obama, Systemic risk, Consumer Financial Protection Bureau, President of the United States, Financial system