The GOP Is Planning On Stripping Away Homeowner Rights By Eliminating The CFPB
New Yorkers could lose the few remaining homeowner rights they have thanks to Donald Trump. Trump plans on giving Wall Street and the GOP what they have been salivating over for the past three years. The ability to gut the Consumer Financial Protection Bureau.
As a result of his victory in November, Donald Trump is now planning on giving Wall Street lobbyists the weak agency they have dreamed of. A CFPB that sides with financial predators over consumers.
Trump is considering former Congressman Randy Neugebauer to run the CFPB. Trump has not offered Neugebauer the job. Yet, the Trump Transition Team has stated no other candidates are under consideration.
Neugebauer opposed the creation of the CFPB. Neugebauer and the GOP leadership have stated repeatedly they want to eliminate the agency. As a result, Trump and the GOP see Neugebauer as the perfect man to dismantle the agency from within.
Neugebauer introduced a bill to overhaul and weaken the agency before leaving congress at the end of last year. He once labeled the agency’s effort to reign in payday lenders as a paternalistic erosion of consumer product choices.
Federal Court Ruling Gives The GOP An Opening To Dismantle The CFPB
A federal appeals court ruled last year that the agency structure is unconstitutional and order the agency be restructured. Only the Supreme Court can overturn the Appellate Court and that is unlikely. Hence, Trump will be able to remove the Obama-appointed Richard Cordray at any time for any reason.
The CFPB is funded as part of the Federal Reserve system. This prevents congress from cutting the CFPB budget through the congressional appropriations process. Hence, the only way to weaken the agency is by appointing a pro-Wall Street director.
The CFPB has returned $12 billion to 27 million people caught up in various scams under Cordray’s leadership. the agency also passed pro-consumer rules regarding mortgage disclosures and homeowners rights. The agency was a key player in exposing the large-scale checking and credit card fraud at Wells Fargo.
The CFPB Is The Last Best Hope For Homeowner Rights
The CFPB has become the only refuge for victims of mortgage fraud. The federal government’s HAMP program ended at Midnight on January 1st. HAMP was launched in 2009 to help homeowners who fell victim to the financial crisis.
In addition, HAMP gave a blueprint for lenders and servicers to give loan modifications to homeowners. The program also came with incentives for servicers and investors to modify loans for struggling homeowners.
The U.S. Treasury sponsored program also assisted nearly 50% of its applicants in keep their homes.
The days of lengthy court battles are also coming to end as well. Therefore, the days of New Yorkers being able to live in their home for free for 3-5 years is over. Something Wall Street and the incoming Trump administration has made that abundantly clear.
Finch Rating Agency has also stated, “Modification decision timelines will shorten, which may lead to a reduction in liquidation timelines.”
New York Homeowners will be forced to fight their lenders to stay in their home.