Sept. 28, 2012 – Consumer Financial Protection Bureau Director Richard Cordray swore in the 25 members of the new Consumer Advisory Board, including a credit union representative, Thursday during the panel’s first meeting, held in St. Louis and attended by NAFCU Regulatory Affairs Counsel Tessema Tefferi.
“The CFPB is taking input and using multiple forums to help garner public input and form policy,” said Carrie Hunt, NAFCU’s general counsel and vice president of regulatory affairs. “To ensure the best interests of credit unions and their members, credit unions and credit union trades need to be a part of this ongoing dialog.”
The mortgage market and access to mortgage credit dominated the board’s first meeting. Notably, lender representatives pointed to a sharp increase in investors purchase real estate owned properties (foreclosed properties), many of which are being converted to rental property. The board also discussed financial literacy, student lending, financial services to seniors and predatory lending.
Cordray offered a brief overview of the bureau’s Know Before You Owe initiatives on mortgages, student loans and credit cards. CFPB Deputy Director Raj Date, reiterating the CFPB is data-driven, discussed the drop in household net worth during the financial crisis and the recent strengthening, the tightening of mortgage credit for people with less-than-excellent credit scores and the rise in credit card profits as consumer satisfaction has grown.
The board’s inaugural meeting was open to the public. Local participants pushed for action to address predatory lending in their communities.