QM Rule Shows Why the CFPB Should Be Abolished

I agree that no downpayment loans were one cause of the mortgage bubble but only one of many, many that reflected a culture of bad underwriting, a failure to verify income and repayment ability, and other such niceties in pursuit of the almighty dollar. The voluminous abuses at banks and mortgage lenders don't need to be repeated here. Financial institutions don't pay huge settlements when there is no wrongdoing. Regulators were more interested in keeping banks happy within their regulatory charter than monitoring for safety and soundness but it wasn't the originators, loan officers, or CEOs who lost their homes when the bank-induced bubble burst. It was consumers, generally low-income consumers, overwhelmed by fees and charges they couldn't understand that went straight to the bank bottom lines and whose homes were roboforeclosed among other abuses. That is why we need the CFPB. An independent agency that has a single mission: to protect the interests of American consumers against the greed and abuses of Wall Street and Main Street financiers who lured them in and then kicked them out. The Qualified Mortgage rules are reasonable and have been generally favorably received by prudent lenders who understand their capacity to bring down the nation's economy. Unless we have someone watching out for the consumer, the historical pattern of lending abuses and the absence of effective safety and soundness in credit underwriting to pursue the quick buck will resurface. It's not about inflation in early mortgage years, it is about giving a voice and an interest to those who cannot protect themselves. And they are doing a good job at it all things considered. Paying nominal fines or writing off a few loans are no longer the cost of doing abusive business. There is a new Sheriff in town and his presence is long overdue.