Richard Cordray Should Not be Confirmed as CFPB Director Tomorrow: Refuses to Help Homeowners & Builds Roadblocks for Homebuyers

On Tuesday, March 12TH, the Senate Banking Committee is considering Richard Cordray as the Director of the Consumer Financial Protection Bureau (CFPB).  NACA, which has been the most effective and outspoken organization in combating the mortgage crisis, is opposing his confirmation until he demonstrates he will protect at-risk homeowners and the dream of affordable homeownership.  NACA, with its more than two million members, believes that Mr. Cordray’ s actions at CFPB have been about creating a perception of consumer protection, with the reality being that he has not been pro-consumer in the area of homeownership.

 

Failed Homeowners:

NACA has submitted over 75,000 files to CFPB of homeowners who were denied a modification to make their mortgage affordable.  Richard Cordray’s excuse for not assisting at-risk homeowners is that Congress prevents him from doing so.  In addition, CFPB’s new mortgage servicing standards won’t take effect until January of 2014 therefore doing nothing to protect the thousands of homeowners who are being foreclosed on every day.  In fact, the timing of these regulations has the opposite effect for homeowners by encouraging lenders to accelerate the foreclosure process. Richard Cordray has neither helped homeowners nor taken any action against a bank for their wrongful acts. 

 

Failed Homebuyers:

The purchase lending regulations implemented by CFPB are an outrageous example of over-engineering.  The 3,000 pages regulating every aspect of the mortgage industry will effectively destroy the dream of home ownership for working people.  CFPB, with hundreds of lawyers with no mortgage experience has fallen far short of the hopes for an effective consumer protection agency.  An example of their arrogance is the refusal to consider exceptions to the unintended consequences of their regulations (i.e. mortgages not considered a Qualified Mortgage but are in fact beneficial to homebuyers).    

 

While many Republicans are against Richard Cordray because they dislike the structure of the agency, many Americans of both parties should be against his confirmation at this time because he has not demonstrated a track record of protecting consumers from the lenders’ wrongful acts.  “There should not be a rush to confirm Richard Cordray when hundreds of thousands of homeowners who have been denied a mortgage modification are waiting for him to take action against the lenders,” states Bruce Marks, NACA CEO.  “Members of Congress should be outraged that Richard Cordray blames them for his failures in helping at-risk homeowners.  This is the opportunity to hold Richard Cordray and CFPB accountable.” continued Mr. Marks.

 

All NACA members are urged tho call their United States Senators and urge them to vote against Cordray’s nomination.  Especially important are the members of the Senate Banking Committee, who are:

 

 

Sherrod Brown (D-OH)

Tom Coburn (R-OK)

Bob Corker (R-TN)

Mike Crapo Ranking Member (R-ID)

Kay Hagan (D-NC)

Heidi Heitkamp (D-ND)

Dean Heller (R-NV)

Mike Johanns (R-NE)

Tim Johnson Chairman (D-SD)

Mark Kirk (R-IL)

Joe Manchin III (D-WV)

Robert Menendez (D-NJ)

Jeff Merkley (D-OR)

Jerry Moran (R-KS)

Jack Reed (D-RI)

Charles E. Schumer (D-NY)

Richard Shelby (R-AL)

Jon Tester (D-MT)

Patrick J. Toomey (R-PA)

David Vitter (R-LA)

Mark R. Warner (D-VA)

Elizabeth Warren (D-MA)

 

Contact for all United States Senators can be found on the Senate website, http://www.senate.gov.

 

The Cordray nomination must be halted until he either takes responsibility for actually protecting American Consumers or a candidate willing to do so is nominated instead of Cordray.

 

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One Comment

  1. Carrie
    Posted April 11, 2013 at 3:15 pm | Permalink

    How can i have CFPB investigate my file?

    I originally purchased through CountryWide then sold servicing to Bank of America

    MERS is on my paperwork, i have a Fannie Mae backed loan

    i cant seem to get any assistance from Bank of America nor Fannie Mae…

    Will Congress do anything? Will CFPB do anything?
    Will the President replace Ed DeMarco from head of FHFA to allwo for the much needed principal reductions to severely underwater homeowners?

    What can be done?

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