“and can, “contribute to inflated estimates of alleged consumer harm.””
So its working as designed.
Current CFPB rules have inflated certain costs to home buyers and home refinances. For example, the rules have inflated appraisal fees by 50% with over half the money going into the lenders’ pocket while cutting the fees paid to appraisers.
The CFPB in my opinion was designed to discourage homeownership and eventually get rid of that pesky private property rights issue. As someone in the business for the last 22 yrs, I am still originating only because I’ll be damned if I’ll let the socialist SOBs keep anyone from owning a home just because of the mountains of paperwork they put in front of a borrower. If someone has good credit, good income, good assets and wants to own a home, why should they be stopped over a paperwork technicality and discouragement from “the powers that be”. The CFPB’s new regulation was touted to help the consumer. Per the Mortgage Banker’s Association (pretty well respected), the chart at this link: https://www.mba.org/Documents/Research/ChartoftheWeek%2006052015.pdf (I don’t know if I can post the actual chart) shows the basic costs to lenders to originate a mortgage loan in 2009 went from about $3,900 to $7,195 in 1st quarter 2015. The overlay of regulations from different gov’t agencies is incredibly expensive and I can’t imagine what the TRID costs are going to be after October 1st since all lenders, title companies and attorneys had to completely retool/replace their computer systems to meet the regulations. And sellers? They have no rights anymore. It’s absolutely wrong. Sorry for the lengthy post. This is usually my husband’s account but I had to respond...sick of the CFPB... wasn’t it Reagan that said something like...”I’m from the gov’t and I’m here to help...” ?