Sam Gendusa June 2, 2015

Newsletter - June 2015

In a legislative twist that is of particular interest to all parties impacted by the regulations and reach of the Consumer Financial Protection Bureau (CFPB), Senator David Perdue of Georgia introduced a bill to the US Senate on May 19th that would cause the CFPB to come under Congress’ appropriations process, rather than in its current placing under the Federal Reserve.

Anything involving the CFPB is obviously big news in the mortgage industry, but this development has potentially far-reaching effects, a few of which I want to point out quickly:

  1. Overseeing the Overseer Could Limit Its Power If the bill is signed into law, the CFPB would be reliant upon Congress for its funding (currently it has access to up to 12% of the Federal Reserve’s annual operating expense). Essentially, this would add a level of congressional oversight to the CFPB’s process, which would impair the bureau’s freedom to regulate on the fly. This is potentially good news for those negatively impacted by current regulations. As is...
  2. This Could Only Be The First Step Senator Perdue, in his press release,
    had this to say about his motivations for authoring the bill:

    "The agency itself has failed to operate within its own budget and proven it is more concerned with preserving its own power than protecting the public. Ultimately, I believe the CFPB should be eliminated, but an important first step is bringing it into the light for the American people."

    So whether or not you agree with the Senator’s thoughts on the CFPB, it is important to know that its detractors' end-goal is far more than just “overseeing the overseer.” They would like to see the bureau only in history books, and you need to be prepared to respond to this potential situation down the road. With that in mind...

  3. Don't Put All Your Eggs in One Basket Whether Senator Perdue succeeds in limiting the CFPB’s power or not, there is one thing you absolutely must do: Be prepared. In the current regulatory climate, it is critical that you are able to present a full, clear paper trail for your every move. And while regulatory relief is a possibility down the road, it’s not a bet we recommend you make. The stakes are too high.Blue Streak Docs can manage your document retrieval and ensure you have all the information you need to defend your position in court, should it be necessary. Plus, if you haven’t worked with us yet, you can try us out and get your 5th order FREE!

Employee Of The Month

Mike is an all-around team player and this month he really proved himself by giving a helping hand to each department with their production. He is always willing to step up to the plate and help with any task to ensure our orders are sent back to our clients in a timely manner.

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