Blog Talk Radio Show Summary July 18, 2011: Future of Mortgage Banking (Part III); CFPB Update

The Consumer Financial Protection Bureau (CFPB) was the topic of discussion this week on Lykken on Lending.  The CFPB is set to start business on Thursday of this week.  It will do so without a Director, as President Obama has just announced his choice.  The name Richard Cordray will likely be sent to the Senate for confirmation.  His confirmation is not assured.  But in defense of Mr. Cordray, confirmation of any one is unlikely without significant efforts by Republicans in the Senate to alter certain aspects of the CFPB.  As was established in the Dodd-Frank Act, the CFPB is to be headed by a Director.  The Republicans would like to change that to a five person commission.  Also, as set forth in the Dodd-Frank Act, the CFPB receives its funding from the Federal Reserve System rather than from Congress.  Senate Republicans want to see the CFPB funded by Congress so as to make the CFPB more accountable.  The CFPB will be a very powerful regulator and as such both these Republican demands have substantial merit.  Lets hope the President does not circumvent the nomination debate by making the CFPB Director appointment during the August recess.

Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline‘s Joe Farr:

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