Shake up of the CFPB: What Does It All Mean?

what do the changes as the CFPB mean for real estate

The Consumer Financial Protection Bureau (CFPB) is the federal government agency that was created to provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace. With the shakeup in the leadership as Richard Cordray stepped down and Mick Mulvaney is now the Bureau Acting Director, industry professionals are wondering what it all means.

Should the title insurance, banking, and housing industries be concerned?

Changes at the CFPB

On Deregulation

It is well known that the President and other individuals in his administration are keen on deregulation. What impact will it have on mortgage services moving forward? S&P Global recently composed a report, and the conclusion the experts came to was — not much. Even with the talk of potential changes to Dodd-Frank, the servicing rule changes put in place after the financial crisis cannot be easily undone.

In addition, mortgage providers do not want to be associated with any kind of questionable strategies that could place them out of favor with consumers. Even though potential deregulations may result in some softening or leniency around some standard business practices, the experts at S&P agreed that more than likely there will be little overall impact.

What about Fintech?

The explosive growth of financial technology has permeated the housing industry as the types of transactions consumers are looking for continue to evolve. From small value, short-term loans to access to full mortgages on smartphones, Fintech startups are now valued at over one billion dollars. What will the effect on Fintech, in particular, be?

Certainly, with the mountains of data swirling around the internet, the CFPB and its leaders will need to gain more insight into the interests of Fintech borrowers and create solutions that are increasingly secure. From hackers to new methods of commerce, there are definitely vulnerabilities and business elements that are not well tested. As a customer protection agency, it has a duty to strengthen its programs in innovative technologies.

The Takeaway

Regulations are an inherent part of the title insurance, banking, and housing industry. The Consumer Financial Protection Bureau key serves as a financial advocate for millions of working Americans that are in the market for a new home, acting as a governing force for consumers and industry professionals alike.

Even though there is more than likely going to be actions taken on deregulation measures with the new leadership at the CFPB, potential homeowners and those in the field should not be overly concerned at this juncture. U.S. new home sales continue to be robust, recently hitting the highest level the industry has seen in a decade.

That being said, it is important to keep up with all the industry news to ensure business strategies are continually aligned with legislation and other actions affecting the housing marketplace. For the latest information on important issues related to the real estate industry, stay in touch with us here. We are dedicated to helping homeowners, lenders, and other industry professionals with the latest information affecting their lives and their financial future.

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