Potential Consumer Financial Protection Bureau Shutdown? Here’s What Homebuyers Need to Know
Written by Elyse Dillard, Content Specialist at LegalShield. Elyse creates educational resources about legal and identity theft protection services. She works to make complex legal concepts more accessible to readers and has contributed to numerous articles on the LegalShield blog.
Recent news headlines have stated that the Consumer Financial Protection Bureau (“CFPB”) may shut down. This could cause a ripple effect of changes for Americans who are looking to buy homes. If you are a potential homebuyer, you want to stay up to date on the risks, rights, and responsibilities that you have as regulations shift.
We’ve asked one of our LegalShield provider lawyers to provide insight for readers to better understand the changes that may take place. Ben Farrow is the supervising attorney at Anderson, Williams, & Farrow, LLC, in Montgomery, Alabama. Ben offers some great information and tips about the role of the CFPB and the results of its potential shutdown.
What is the CFPB?
Before we dive into Ben’s helpful contributions, let’s establish the role of the Consumer Financial Protection Bureau for those who may not already know: The CFPB aims “to make consumer financial markets work for consumers, responsible providers, and the economy as a whole. [They] protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. [They] arm people with the information, steps, and tools that they need to make smart financial decisions.”
What immediate risks do homebuyers face without the CFPB’s oversight?
Ben Farrow shares, “The CFPB was created to streamline the oversight of consumer financial companies. Part of what it did was to simplify disclosure forms, create educational tools and police overly aggressive lenders/banks. It was a real effort to make lending much more transparent and to make a sometimes-arcane process less opaque. The current administration immediately relaxed oversight and stopped some enforcement actions.”
How might mortgage lenders and brokers adjust their practices?
Ben replies to this, “The biggest immediate change will be that the complex banking world with its myriad relationships and fee splitting/sharing and other incentives may become less apparent. Lending is complicated and the CFPB made it somewhat easier for consumers to compare lenders’ terms/fees/rates etc.”
What can homebuyers do to protect themselves?
Ben gave us a helpful list of tips for homebuyers to follow as they navigate this complex process:
- Take a homebuyer education course to educate yourself on what you don’t know.
- Compare your options carefully before you make decisions.
- Look at the monthly cost, the length of the loan, how the total borrowed was calculated, etc.
- Always remember that everything is negotiable.
What organizations or resources are available for homebuyers?
Ben says that these are a few of the better-known consumer-focused groups:
What can you do today to get legal help?
It can get complicated and time-consuming as you seek to understand evolving regulations and your role within it. Don’t face it alone! LegalShield offers affordable access to the legal assistance that you deserve so that you can navigate the homebuying world with confidence.
When you sign up for a LegalShield Membership, you gain access to a LegalShield provider law firm at a fraction of the hourly fees of other lawyers. Schedule consultations, ask unlimited legal questions, receive help with document review, phone calls, letters and more. You can do all this with just a few taps on our mobile app.
Take the next step!
- See how LegalShield offers access to help with real estate legal matters.
- Check out our frequently asked questions to see how we work.
- Read our article on how to get help for consumer law issues.
About our contributing provider lawyer: Ben started working at Anderson, Williams, & Farrow, LLC in 1992 and has been the supervising attorney since 2003. He became a partner in 2006. He is licensed in Louisiana, Alabama and Mississippi and maintains an active docket in all three states. He speaks at Super Saturdays, oversees Associate events for the firm and leads the Estate Planning Webinars and live events. He also provides advice and counsel to LegalShield members every day.
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