The upcoming implementation of the new LO Compensation rules has given me pause to consider the current regulation that is already in place in regards to mortgages and consumer credit. The brand new Consumer Financial Protection Bureau will be given the task of overseeing this new regulation. According to the CFPB website their mission will be to make sure consumers have the information they need to choose the best financial products and services for them. Gosh I feel better already. But really… how much regulation do we really need?

In regards to predatory lending we already have the HOEPA Act of 1998 and the Safe Act of 2008 which is part of the HERA Act (Housing and Economic Recovery Act).

In regards to financial disclosures we have the Reg Z/TILA Act of 1968 which was amended by the MDIA Act of 2009. We have the RESPA Act of 1974 and then the HPA Act of 1998 (Homeowners Protection Act).

When you get into Prohibiting discrimination we have the Civil Rights Act of 1866,the Fair Housing Act of 1968, the ECOA Act of 1974 and then the HMDA Act of 1975 (Home Mortgage Disclosure Act).

On the subject of Privacy and Consumer Identification we have the FCRA Act of 1968 then the GLB Act of 1999 (The Privacy Act) and lastly the FACT Act of 2003.
I mean seriously…do we really need another body to regulate us? We had all of the above and it did nothing to stop the financial meltdown we have just witnessed. Is one more regulatory body really going to make the consumer safer? Or maybe just bog down the lending process more than it already is.

I apologize for the Inconvenience,
Jeff McLaughlin

Diane Gerdes