Consumer Financial Protection Agency Proposal

Important Documents

• Financial Regulatory Reform: Analysis of the Consumer Financial Protection Agency (CFPA) as Proposed by the Obama Administration and H.R. 3126


• Financial Guns of August


• List of August Town Hall Meetings on the Consumer Financial Protection Agency


• Consumer Financial Protection Agency One Pager


• Powers Proposed by the Consumer Financial Protection Agency

On June 30, the Obama Administration propose creation of a new Consumer Financial Protection Agency (CFPA) to “promote transparency, simplicity, fairness, accountability, and access in the market for consumer financial products or services.” 

The reality is that a new federal agency will be given unprecedented power to write and enforce rules for all consumer financial products and services and the individuals that provide them. This means you. Settlement services providers, abstracters, attorneys, title insurers and potentially real estate appraisers, pest inspectors, surveyors and others who are part of a mortgage closing transaction are swept under the new agency.

Some elements of the plan make sense, like combining existing authority under RESPA and TILA into a single regulator. However, the CFPA powers are so broad that they conflict with existing state regulation of the title industry. We strongly believe that CFPA authority should be limited to existing authority as spelled out under RESPA and TILA.

Property transfer is accomplished at the local level, according to local custom and governed by state law. Regulation of local property transactions by Washington bureaucrats is a recipe for frustration and malfunction.

On July 15, ALTA signed an insurance coalition letter opposing any inclusion of insurance in the legislation and on July 20, ALTA signed a letter with a broad group of trade associations representing millions of businesses of all sizes across the country from diverse sectors of the economy that urged Congress to approach this thoughtfully.  Shortly afterwards, we gained a modest victory when the House Financial Services committee announced it would delay a planned July vote until September. 

Below is information regarding the proposal to revamp the U.S. financial regulatory structure.

Industry Letters

• Financial Reform and Commercial Real Estate Finance - February 25, 2010


• Industry Letter Opposing the inclusion of "Insurance" under the Consumer Financial Protection Agency – July 15, 2009


• Multi-Industry Letter to Representative Frank and Representative Bachus asking for a delay in voting on H.R. 3126 - July 20, 2009

Articles

• Small Banks Hold Key to Central Piece of Regulatory Revamp
  The Wall Street Journal | July 31, 2009
  
• Gaps in Obama's Consumer Financial Protection
  Market Watch | July 13, 2009
  
• Elitist Protection Consumers Don't Need
  Washington Post | July 13, 2009
  
• Singularity of Purpose: Is Looking Out for Consumers Too Narrow a Mission?
  K&L Gates | June 2009
  
• Rep. Frank Introduces U.S. Consumer Agency Bill
  Reuters | July 9, 2009
  
• Plan for Consumer Agency Criticized
  Washington Post | July 9, 2009
  
• Industry Takes Aim at Plan to Create Financial Protection Agency
  Washington Post  |  July 7, 2009
• Sides Want Say in Consumer Protection Bill
  The Hill  |  July 6, 2009

Key Links

• President Obama Video on Proposed Consumer Financial Protection Agency
• Financial Regulatory Reform/A New Foundation: Rebuilding Financial Supervision and Regulation (Department of Treasury, June 2009)
• Obama Fact Sheet #1: Regulatory Reform (June 2009)
• Obama Fact Sheet #3: Consumer Protection (June 2009)
• Roundtable Opposes Consumer Financial Protection Agency (June 2009)
• Summary of Obama Regulatory Restructuring Proposal (BuckleySandler LLP; June 2009)
• Summary of Obama Regulatory Restructuring Proposal (K&L Gates) (June 2009)
• Summary of Obama Regulatory Restructuring Proposal (K&L Gates; June 2009)
• Summary of Obama Regulatory Restructuring Proposal (Reed Smith LLP; June 2009)
• The Consumer Financial Protection Act of 2009 (Obama Proposed Regulatory Reform Bill; June 2009)
• Department of Treasury Press Release on Obama Regulatory Restructuring Legislation (June 2009)
• Powers of the Proposed Consumer Financial Protection Agency