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#1875702 - 12/03/13 09:14 PM Writing rules for people that haven't been subject
Always In Training Offline
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"The CFPB has announced it will be issuing a rule that will allow the Bureau to supervise certain nonbank student loan servicers for the first time."

Do you really get to to do that? I'd like to write a rule that would allow me to monitor everyone that drives down my road, but do I have authority to supervise people have never been supervised?
Does that strike anyone else as odd? Maybe I just need to go get a Snickers, and stop my whining. Maybe this belongs in the cooler. My apologies.

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#1875719 - 12/03/13 09:39 PM Re: Writing rules for people that haven't been subject Always In Training
Compl101TX Offline
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I was wondering the same thing this morning. Weird.
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#1875752 - 12/03/13 10:24 PM Re: Writing rules for people that haven't been subject Always In Training
rlcarey Online
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You might want to read Section 1024 of the Dodd-Frank Act
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#1876420 - 12/05/13 06:59 PM Re: Writing rules for people that haven't been subject Always In Training
John Burnett Offline
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Congress bestowed unusually broad powers on the Bureau to do lots of things involving aspects of financial services offered to consumers.
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#1876458 - 12/05/13 08:10 PM Re: Writing rules for people that haven't been subject Always In Training
RockChucker, CAMS Offline
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Yes the CFPB is like its own Kingdom with its own King who is not subject to Congress. Scary if you ask me
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#1876465 - 12/05/13 08:21 PM Re: Writing rules for people that haven't been subject Always In Training
rlcarey Online
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Well, they were created by the Congress and saying that they are no longer subject to Congress is a "talking point" rather than reality. If Congress wants to limit their powers, they can surely do it.
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#1876467 - 12/05/13 08:25 PM Re: Writing rules for people that haven't been subject Always In Training
Kathleen O. Blanchard Offline

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Don't forget that a goal was to bring these unregulated entities under regulatory supervision.
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#1876496 - 12/05/13 09:12 PM Re: Writing rules for people that haven't been subject Kathleen O. Blanchard
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Originally Posted By: Kathleen B
Don't forget that a goal was to bring these unregulated entities under regulatory supervision.



Which ones KB?

The unregulated financial service providers like mortgage companies and brokers, pawn shops, car title lenders? Or are you refering to the CFPB?
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#1876500 - 12/05/13 09:14 PM Re: Writing rules for people that haven't been subject Always In Training
Kathleen O. Blanchard Offline

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Ha ha. I am not engaging in that type of discussion.
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#1877952 - 12/12/13 12:01 AM Re: Writing rules for people that haven't been subject Always In Training
RockChucker, CAMS Offline
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I haven't been able to find anything that says Congress can limit the CFPB's powers. Plus their operating perameters are so broad and vague that it gives the impression that they can just decide that they need to regulate some entity or company and kabam! expanded authority
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#1877963 - 12/12/13 04:42 AM Re: Writing rules for people that haven't been subject Always In Training
rlcarey Online
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Congress created them by statute, they can just as easily un-create them. Apparently you didn't read the section of the act that gives them the authority to regulate these entities. See my previous post for the section number. Perception? Perception is left to the uninformed. People perceive much that is not true.
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#1877976 - 12/12/13 12:19 PM Re: Writing rules for people that haven't been subject Always In Training
edAudit Offline
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You are here
(1) APPLICABILITY.—Notwithstanding any other provision of this title, and except as provided in paragraph (3), this section shall apply to any covered person who—

(A) offers or provides origination, brokerage, or servicing of loans secured by real estate for use by consumers primarily for personal, family, or household purposes, or loan modification or foreclosure relief services in connection with such loans;

(B) is a larger participant of a market for other consumer financial products or services, as defined by rule in accordance with paragraph (2);

(C) the Bureau has reasonable cause to determine, by order, after notice to the covered person and a reasonable opportunity for such covered person to respond, based on complaints collected through the system under section 1013(b)(3) or information from other sources, that such covered person is engaging, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services;

(D) offers or provides to a consumer any private education loan, as defined in section 140 of the Truth in Lending Act (15 U.S.C. 1650), notwithstanding section 1027(a)(2)(A) and subject to section 1027(a)(2)(C); or

(E) offers or provides to a consumer a payday loan.


Letter C seems pretty broad.

However

Consumer Financial Products are defined as

Under 12 U.S.C. 5514, the Bureau has supervisory authority over nonbank covered persons of any size offering or providing three enumerated types of consumer financial products or services: (1) origination, brokerage, or servicing of residential mortgage loans secured by real estate, and related mortgage loan modification or foreclosure relief services; (2) private education loans; and (3) payday loans.
4 The Bureau also has supervisory authority over “larger participant[s] of a market for other consumer financial products or services,” as the Bureau defines by rule.(5)

(5) 12 U.S.C. 5514(a)(1)(B), (a)(2). The Bureau also has the authority to supervise any nonbank covered person that it “has reasonable cause to determine, by order, after notice to the covered person and a reasonable opportunity . . . to respond,” that such covered person “is engaging, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services.” 12 U.S.C. 5514(a)(1)(C). The Bureau has published a notice of proposed rulemaking to establish uniform procedures relating to this provision of the Dodd-Frank Act. 77 FR 31226 (May 25, 2012).
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#1878039 - 12/12/13 03:32 PM Re: Writing rules for people that haven't been subject Always In Training
straw Offline
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(B) is a larger participant of a market for other consumer financial products or services, as defined by rule in accordance with paragraph (2);

This is the section that allows CFPB to define the scope of their authority. CFPB writes the rule that defines what is a larger participant of a market for other consumer financial products or services.

Bureaucracies inherently expand their scope over time, even without the ability to define their own scope. Having this power within the agency itself will prove to be disasterous.

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#1878224 - 12/12/13 07:57 PM Re: Writing rules for people that haven't been subject Always In Training
RockChucker, CAMS Offline
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Rl if you can give me 5 instances where Congress "un-created" anything resembling the size and scope of the CFPB I will send you the "Official Seal of Awesomeness".

Straw - that section is the part that gives me the most concern.

Now I do admit that I am more a weekend warrior when it comes to compliance stuff and that I don't wade hip deep in this $#%t like most of you poor souls but what I am exposed to I find very interesting.
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#1878349 - 12/13/13 04:52 AM Re: Writing rules for people that haven't been subject Always In Training
rlcarey Online
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Un-creating anything is usually very unusual and even though it is within their power, I doubt that they have the balls to do it. [censored], they can't even pass a budget. Oh - wait - they might just do it this year and what? A two year budget?? You just never know????? smile
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#1878400 - 12/13/13 02:40 PM Re: Writing rules for people that haven't been subject rlcarey
edAudit Offline
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Originally Posted By: rlcarey
Un-creating anything is usually very unusual and even though it is within their power, I doubt that they have the balls to do it. [censored], they can't even pass a budget. Oh - wait - they might just do it this year and what? A two year budget?? You just never know????? smile


That is not fair they have an election to win country to run smirk
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