Richard Corday On CFPB’s Relief Response

first_img Share Save In a new white paper, Richard Cordray, the former Director of the Consumer Financial Protection Bureau (CFPB), outlined the steps he alleges the CFPB needs to be taking right now in the face of an economic crisis caused by COVID-19.“[The Bureau] is relaxing various duties for financial companies and continuing to push the industry to comment on regulatory initiatives at a time when the focus needs to be placed on the grave economic hardship now confronting millions of Americans,” Cordray says in a whitepaper published on Medium. “The CFPB has the legal authority needed to take urgent steps to prevent many consumers from sliding off the financial cliff.”First, Cordray encourages the CFPB to assemble a detailed picture of what is going on in the consumer marketplace. According to Cordray, the CFPB should use its consumer complaint response system to learn from consumers what exactly is happening and make the answers publicly available.Cordray also notes that the CFPB should be doing what it can to help people avoid foreclosure and eviction. This means keeping Americans informed of the state and federal relief options available to them.“In the CARES Act, Congress has provided a much simpler mechanism for many consumers to seek and obtain relief from foreclosure if they miss mortgage payments during the crisis,” Cordray said. “The CFPB must use its supervision authority to monitor the banks and financial companies, making sure they follow through in making such relief available to consumers.”Additionally, the former Director states that the CFPB should be helping lenders and officials “fashion ways to reduce loan delinquencies and defaults,” specifying the need for simplicity.“The CFPB should be in the lead in pressing the companies to help, such as by waiving overdraft fees, NSF fees, or late fees and by providing forbearance on loan payments,” Cordray said. “These initiatives must be simple and, if not automatic, must be easy to access; complexity was the Achilles heel of many such programs a decade ago.”Editor’s note: As of press time, the CFPB has not responded to a request for comment. Richard Corday On CFPB’s Relief Response Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago Previous: DS5: FHFA Director Discusses Forbearance Next: The Most At-Risk Housing Markets Subscribe Tagged with: CFPB Coronavirus Related Articles CFPB Coronavirus 2020-04-07 Seth Welborn April 7, 2020 1,440 Views Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Richard Corday On CFPB’s Relief Response Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Sign up for DS News Daily About Author: Seth Welborn The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Postlast_img read more