8-10-2014: Dodd-Frank law took effect July 21, 2010. With 2,300 pages, it has overloaded regulatory agencies and about half o the regulations required by it have been finalized and >45% of Congressional deadlines have been missed. There have been unnecessary rules like the Volker rule that have done nothing to prevent the main cause of the mortgage meltdown – lower Fannie and Freddie underwriting standards. Or how about the definition of a SIFI with >$50 Billion in assets that won’t bring down the US financial system. Since the Federal Reserve funds the CFPB, Congress can’t influence its funds and operations…which may be partially good, but the CFPB isn’t accountable to us but it is to the Federal Reserve – scary as well. And even the employment of 1,000s of compliance officers that don’t generate income but cost money has an impact on bottom line revenues. WSJ, 7-21-14, A13.
10-11-2013: Apparently, rephrasing a 2010 quote by Barney Frank (Dodd-Frank named after him)…he hoped Fannie and Freddie is abolished as it was a mistake pushing lower income people into housing they couldn’t afford…Source: WSJ, 9-18-2013, A17.
8-24-2013: Ok, a Wall Street Journal (article on page C1, 7-24-2013) reported that the Federal Reserve (monster who funds the CFPB) and the FDIC intend for the CFPB to “loosen” requirements that banks retain a portion of the equity to have “skin in the game” – WHAT!- wasn’t this a major plank (lender loan shenanigans) on which the CFPB was initiated? Do you feel duped yet?
6-13-2013: Another unintended consequence: Thanks to tighter definitions by the CFPB (created by Dodd-Frank), home sellers now are demanding “pre-approvals”, not “pre-qualifications”. Source: http://www.housingwire.com/rewired/2013/06/11/dodd-frank-mortgage-shift-pre-qualify-pre-approval
Dodd-Frank bill makes owner financing and builder financing a thing of the past. Source: http://www.news-press.com/article/20130604/OPINION/306040013/Dodd-Frank-Act-government-overreach-into-private-real-estate?nclick_check=1
Apparently the federal limits of credit card issuers can adjust rates led to higher rates and limited product offerings driving borrowers to less conventional lenders including payday lenders, loan sharks, and pawn shop rates.
Also the 2009 CARD (Card Accountability Responsibility Disclosure) Act imposed limits on credit card interest rate adjustments and penalty fees and is designed to enable transparency relating to the extension of credit under credit cards.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.