The CFPB According to Cordray
August 26, 2013 11:12 AM
Consumer Financial Protection Bureau Director Richard Cordray has had a very busy few years at the helm of the nation's newest bank regulator. His tenure has involved creating a bureau almost from scratch and contending with a wide range of highly contentious policy issues-none more controversial than his own status, which was changed from acting to permanent CFPB director following a July Senate confirmation vote in which he garnered a two-thirds majority. Following are quotes from an interview Cordray conducted recently with American Banker Washington reporter Rachel Witkowski. (Image: Bloomberg News)
On what he regards as the CFPB's greatest accomplishment to date
First are the changes that we are effecting in the mortgage market, which is the largest consumer finance market and was the one that was most responsible for the credit freeze and the financial meltdown. (Image: Fotolia)
On the impact of his Senate confirmation
The fact the vote was so strongly bipartisan was a great reflection on everybody here. I think they recognize that as such, so it redoubles their enthusiasm. (Image: Fotolia)
On the high number of senior staff departures recently
I think that some of the stories about departures were overblown. I mean, it was natural for us to see some departures two to three years in. (Image: Fotolia)
On criticism that the Bureau's focus on consumer protection put at risk the safety and soundness of banks
First of all, this [the safety and soundness issue] is all in the statute. I also sit on the FDIC board so I do see and spend some time seeing things from the standpoint of regulating institutions in a different way. I serve on the FSOC, which is with all the regulators and we've been meeting quite regularly to discuss issues about the overall strength of the financial system. I will also say that the oversight that I get from Capitol Hill puts us in mind of those issues as well. (Image: Fotolia)
On the risk that lenders will only write home loans that comply with the qualified mortgage rule
I would also say to lenders
that if you have been lending historically according to strong underwriting criteria that are based on sound criteria, you should continue to make those loans. They're good loans. And you'll just be leaving money on the table if you stop making loans because you have some anxiety around the new mortgage rules. (Image: Fotolia)
On the CFPB's future challenges
We're trying to shift those markets [where he sees the four "Ds"--deceptive marketing , debt traps, discrimination and areas like debt collection and loan servicing where consumers face dead ends] to take more account of the consumer and recognize consumers have rights, those rights need to be respected, and you need to put the work in to be in compliance with the law. (Image: Fotolia)
