I thought this was an interesting comment in an online mortgage newsletter I read. The author pointed out that the CFPB was there to protect consumers, but who is out there protecting lenders? He says the Department of Justice, but I’m not real sure how that would work.
While many lenders wronged folks, there were also lots of folks who defrauded lenders during the housing crisis (and continue to do so today).
I’ve got a few good stories about borrowers lying to us or someone fraudulently completing a VOE.
Do you have any idea on how easy it is to create a fake pay stub? If not, google it. You’ll only get about 300,000 hits. For less than $50 you get a professional quality looking pay stub. And there’s over 200,000 websites to visit about a template to create a fake bank statement.
So Director Cordray continues to tell how Credit Unions are good choices for mortgages and the CFPB continues to tout how its new rules make mortgages safer, they don’t tell the full story.
They don’t talk about how it will be more expensive or how a closing can be delayed and a borrower could lose a home. I know it’s called the CONSUMER financial protection bureau, but I wish there was some more balance.continue reading »