Tag Archives: Committee on Oversight Government Reform

Richard Cordray, director of the Consumer Financial Protection Bureau, laid out the agency├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós aims to reform mortgage lending standards before a congressional subcommittee Monday. Speaking before House lawmakers, Cordray acknowledged that although the Dodd-Frank Act has had a hand in improving most consumer lending markets, tight mortgage lending standards have kept creditworthy borrowers out of homes. In an effort to fix these issues, Cordray said that CFPB is proposing ├â┬ó├óÔÇÜ┬¼├àÔÇ£clear rules of the road├â┬ó├óÔÇÜ┬¼├é┬Ø to address each stage of the mortgage process and to rebuild consumer and investor confidence.

An awkward and slightly tense air greeted Consumer Financial Protection Bureau director Richard Cordray at his first congressional hearing Tuesday, where the new appointee cast his agency as one that would strive to reduce duplication and increase transparency. Although careful in their approach to the new director, Republican committee members frequently cited their concerns about federal overreach, the constitutionality of his recess appointment, and interests for transparency. The CFPB can now supervise nonbank financial entities.

A congressional investigation turned up evidence that Countrywide Financial Corp. lavished four members of Congress and an unknown number of GSE executives with discounted mortgages between 1996 and 2008, Rep. Darrell Issa said Friday. Issa addressed members of the House Committee on Oversight and Government Reform, which he chairs, by releasing an open letter to the public. He did not disclose the names of any members of Congress implicated by evidence in the investigation.

Following months of anticipation among critics and admirers alike, the Consumer Financial Protection Bureau formally opened its doors Thursday, taking over rule-writing and enforcement abilities for 18 consumer financial laws, preparing a host of new regulators, and assuming an array of powers provided by the Dodd-Frank Act. The launch notwithstanding, a tied-up confirmation process, scale-up difficulties, and stiff political opposition from the past year hold the CFPB back, making some wonder how the bureau will function.

House Republican lawmakers advanced a round of attacks against Treasury Department adviser and Consumer Financial Protection Bureau architect Elizabeth Warren Thursday, even as Democrats fired back.

With less than two weeks to go before the Consumer Financial Protection Bureau launches, Treasury Department adviser and nominee Elizabeth Warren plans to attend the House Oversight Committee for the last time on Thursday, giving her Republican opponents one final opportunity to lob critiques at her brainchild before it assumes consumer financial protection authority. Analysts across the spectrum seem to agree that Warren will face yet another challenge from Republicans, who fear numerous transfers of authority from seven agencies will tip the scale between regulation and economic recovery.

Signaling new flak in ongoing exchanges between members of Congress and the Consumer Financial Protection Bureau, two House committees addressed Treasury secretary Timothy Geithner in a letter last week with concerns about Treasury Department adviser Elizabeth Warren's refusal to unveil her involvement with mortgage servicers and state authorities in their negotiations. The letter is the second to address widespread concerns about the CFPB's dealings, marking a defensive posture for the agency.

Nearing the conclusion of her tumultuous five-year term, outgoing FDIC chairman Sheila Bair made moves to shape the legacy she leaves behind in July, making the case for sounder policies needed to head off the potential for a replay of the 2008 financial crisis as markets and industries move forward. Meanwhile, analysts fault a mixed legacy for Bair, citing the major roles she played in expanding the FDIC's power and passing crucial language in the Dodd-Frank Act. Bair is set to leave her post as FDIC chairman on July 8.