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Real estate groups offer mixed reactions to Cordray appointment

MBA wary of Consumer Financial Protection Bureau's powers over mortgage firms

Real estate groups had mixed reactions to President Obama's controversial appointment Wednesday of Richard Cordray as the first director of the U.S. Consumer Financial Protection Bureau (CFPB). While the bureau has had the power to regulate big banks since its official launch in July, it was not until the director position was filled that the CFPB could exercise its full supervisory duties over nonbank institutions, including mortgage companies such as originators, brokers and servicers, and loan modification or foreclosure relief services; payday lenders; and student loan providers. "Many of these institutions had no regular federal oversight in the run-up to the financial crisis. They led a race to the bottom that pushed aside responsible businesses, including community banks and credit unions, and greatly harmed consumers," Cordray said in a post on the CFPB's blog on the day of his appointment. "I am pleased to say that, starting today, we can now exercise the ...