Remember when the Consumer Financial Protection Bureau (CFPB) fined Wells Fargo $185 million for creating unapproved customer accounts to meet sales quotas last September? Under new legislation passed by the United States House of Representatives yesterday -- the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act -- the CFPB's power to regulate and fine the financial industry would be curtailed significantly. This could have an impact on real estate agents and brokers as the CFPB is tasked with not only enforcing new mortgage regulations under Dodd-Frank, but also regulations like RESPA, the Real Estate Settlement Procedures Act, which dictates how agents and brokers may interact financially with title and mortgage partners. The nearly-600-page bill with a 148-page comprehensive summary and a four-page executive summary is dense, to say the least, but can shed light on what the problems with the CFPB's regulatory powers currently...
- The Financial CHOICE Act would repeal Dodd-Frank's Volcker rule and dismantle many of its mortgage regulations.
- It would also change the scope of authority and name of the CFPB, tweak its structure and eliminate its ability to investigate "unfair, deceptive or abusive acts and practices."
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