‘This guy lives in Fantasyland’: Comments of the week

In support of an argument that the FHFA should not adopt an alternative scoring model for mortgages sold to the GSEs:

“Not everyone should be a homeowner and for those that want to there is a very clear set of steps one needs to take to get there. Let's not endanger the system again to benefit those who have not proven they are reliable financially.”

Related: FHFA should resist calls to weaken mortgage standards

Another reader reacts to the FHFA credit scoring policy debate:

“A credit score alone doesn't endanger the system. A lack of income documentation and allowing higher debt to income ratios are far more dangerous. Performing fully documented subprime is certainly possible. Prudent DTI calculations, job stability and full documentation of income is far more important than a FICO score.”

Related: FHFA should resist calls to weaken mortgage standards

On a startup’s goal to hasten the demise of a paper paycheck for the unbanked:

“Another idea that suggests the unbanked needs help. visit a check cashing location on a busy day and feel the positive relationship between customer and check cashing staff. the customers come back week after week . attempting to design a new way of doing business with multiple players getting fees for referrals and hidden transaction costs eg. ATM fees is very misleading . good luck. why not try to convince the bankers offer a warm and fuzzy product.”

Related: A startup’s ambitious goal: Put check cashers out of business

In response to an op-ed warning against a repeal of the CFPB’s payday rule:

“While I'm no fan of the payday industry, I cannot support a law that will make it harder for someone who can't get a loan from a bank, get a short term loan from a payday lender. Where will a former pay day customer go when they eventually can't get a loan from a pay day lender? Please ask yourself that question before you promote a new law.”

Related: Payday rule will protect, not harm, vulnerable consumers

On the prospect of J. Mark McWatters, the chairman of the National Credit Union Administration, leading the CFPB:

“As a long-time community commercial banker, and now a CU employee for the last 8 years, I can tell you that McWatters has been a breath of fresh air from a regulatory standpoint. He is skeptical of big government and heavy-handed regulation, and advocates for accountability and transparency in the agencies that regulate financial institutions. Community banks could do a lot worse than having someone with those perspectives in charge of the CFPB.”

Related: Bankers anxious as Trump mulls credit union regulator for CFPB

In response to a defense of McWatters as CFPB head:

"This guy lives in Fantasyland, his members compete like every other business but pay no taxes. So we can’t expect him to be able to discern between fantasy and reality. McWatters has waged war against community banks and we are being very realistic to believe he would continue to do so at the CFPB. His track record matters, he can’t run away from it now."

Related: Credit union regulator more than qualified to run CFPB

On calls to create mandatory penalties for data breaches at the credit reporting agencies:

“Fines aren't likely to stop the breaches, so this is just redistribution of wealth. Still, why do we even need these third party credit bureaus to hold consumer's data and charge for access to it? Instead, we could have a technology enabled solution that keeps personal financial data (and other types of personal information like medical info) in the hands of the consumer (and their providers) that allows data to be shared with the consumer's consent.”

Related: Warren, Warner propose 'massive' fines for breaches at credit bureaus

'This guy lives in Fantasyland’: Comments of the week