Connect with us

Business Finance

Will the Consumer Finance Protection Bureau die under Trump?

(FINANCE NEWS) The CFPB has been making great strides in protecting consumers from big banks and foreclosure. With a new president, will all this change, or will the CFPB be able to continue their work?

Published

on

cfpb

Waiting and speculation

With a new president elected, many citizens are expressing growing concern over a multitude of issues, from housing, to equal pay, and everything in between. While it seems to be a bit more prominent with President-elect Trump, this has certainly happened with every newly elected president. The American people want to see just what the new president will do: will he introduce reform? Will things stay the same? Right now, we’re all playing the waiting game, but there is one area in which we have a bit more concern: housing, more specifically the CFPB.

bar
We have long covered the Consumer Financial Protection Bureau (CFPB) and the different policy changes and reforms that have come down the road along the way. On the campaign trail, President-elect Trump vocally shared his dissatisfaction for the Dodd-Frank financial reforms. This makes us wonder what this could mean for the CFPB.

Is the CFPB in danger of being dissolved?

Of course, people opposing the CFPB is nothing new, but it has been making great strides in helping consumers fight back against banks. However, the threat to the CFPB doesn’t reside with President-elect Trump, but rather with the anti-CFPB legislators and the courts.

According to the Consumerist, anti-CFPB legislators have called for Congress to dismantle the agency entirely, but this would prove difficult, as it would likely require legislation that wouldn’t survive a Democratic filibuster in the Senate.

The Consumerist goes on to state that Ed Mierzwinski, of the U.S. Public Interest Research Group, noted anti-CFPB lawmakers would navigate around the possible filibuster by introducing smaller legislative efforts to slowly undermine the Bureau’s authority and its ability to enforce rules that have been deemed “too-restrictive” on the very banks foreclosing on consumers. The only difference now is that these lawmakers no longer, in theory, fear a presidential veto from President-elect Trump. A veto was a concern, along with a lack of majority numbers in the Senate, from President Obama.

Big banks take aim at CFPB

One of the most vocal opponents to the CFPB has been the Chairman of the House Financial Committee, Rep. Jeb Hensarling from Texas. Hensarling is also a potential nominee for Treasury Secretary in President-elect Trump’s administration. This could be detrimental to the CFPB.

Again, according to the Consumerist, Hensarling is also one of the most bank-backed members of Congress, second only to Paul Ryan, whose campaign received more contributions from commercial banks than any other House member.

Keep this is mind: Hensarling’s campaign and leadership PAC received around $1.9 million from the financial and real estate industries in the most recent election.

This accounts for nearly two-thirds of all money raised for the Congressman. This is pretty astounding, and it definitely explains why there is some worry regarding the dissolution of the CFPB.

The courts aren’t happy either

But as I previously stated, the major issues really aren’t with President-elect Trump or Hensarling; rather the big threat could be the courts.

The Director of the CFPB, Richard Cordray, has been a controversial figure since President Obama appointed him (after some protesting from Hensarling and others). As he was appointed for five years in 2013, he could remain Director while President-elect Trump is in office. However, there was a recent federal appeals court ruling that could undermine his position.

The Director of the CFPB is unique in that they cannot be dismissed at will by the president, unlike other agencies where there is either a multi-commissioner panel, or the authority to be removed by the president.

While this may seem unusual, it was put in place to prevent the pressure that regulated parties might try to exercise on the legislative or executive branches of government to get the Director of the CFPB removed.

The federal appeals court recently concluded that the CFPB’s structure is in fact unconstitutional because it gives one person too much authority, and said person is not directly answerable to the president. This could mean Director Cordray will be on the way out in January. If this happens, the law allows for his Deputy Director to assume the position.

However, it is more likely that the Trump administration will have a replacement in mind, and therein lies the problem and worry.

There is one more potential change to keep in mind: Congress wants to make the CFPB more accountable to lawmakers by having funds come through Congress, rather than independently from the Federal Reserve. This has been proposed before, but the potential for it to pass has never been greater than with this administration.

What will happen?

As of right now, the CFPB has paused all pending legislation in response to Trump’s victory.

Bank-backed lawmakers have tried to reform the CFPB before, but have not, by and large, been successful. Some long-awaited regulations, like arbitration rules, are still pending and will likely be dissolved if Cordray is removed from office.

The Hill reports that President-elect Trump has pledged to put a moratorium on new agency rule-makings once he takes office, which could prevent any pending regulations from getting passed.

While this is all still speculation, it seems quite likely that there will be some reform in the CFPB with a Trump presidency, but how much, or to what extent remains to be see for certain. With any luck, once President-elect Trump takes office, he’ll allow the pending regulations to pass, or at least examine them and the strides the CFPB has been making before disallowing them, or completely dissolving the CFPB all together.

What do you think? Will this be the beginning of the end for the CFPB?

#CFPB

Jennifer Walpole is a Senior Staff Writer at The American Genius and holds a Master's degree in English from the University of Oklahoma. She is a science fiction fanatic and enjoys writing way more than she should. She dreams of being a screenwriter and seeing her work on the big screen in Hollywood one day.

Business Finance

COVID-19: Governors fail renters, a 90-day rent freeze is the only option now

Independent contractors whose only sin is renting instead of owning, are facing evictions even as Governors put tiny bandaids on the situation. A 90-day freeze is the nation’s only option to avoid mass migrations or spikes in homelessness.

Published

on

COVID-19 moving boxes

2020, it seems, is the year of rebranding—even when it comes to our impromptu recession brought on by a variety of factors (but largely thanks to COVID-19). Despite the negative connotations of widespread economic disaster, some people, such as St. Louis Federal Reserve President James Bullard, are regarding this instance as “an investment in U.S. public health.”

Should we all be so optimistic? Bullard seems to think so.

To be fair, James Bullard’s “optimism” also accounts for taking a “$2.5 trillion hit” to the economy, so it’s not all sunshine and dancing unicorns (this time). However, the long-term outcome of handling this crisis correctly—a process which involves bailing out small businesses, matching wages, and contributing to rebuilding and supporting our healthcare infrastructure—will be, according to Bullard, positive.

Bullard’s optimism does come with an important message: As with pretty much anything, the simpler we can keep solutions to this problem, the better the outcome will be. We’re not off to a great start; between states’ varying responses to COVID-19 procedures and mixed congressional support for a stimulus package, the process of dealing with economic fallout has become more complicated than some—Bullard included—would consider “ideal”.

Unfortunately, there isn’t really an “ideal” outcome here that is also practical without requiring a heretofore unseen level of cooperation and cohesion between political parties and state-based cultures. In the event that we can actually pull together and actively invest, as Bullard suggests, in our infrastructure, the implications for our economy will ultimately be positive—even if only in a pyrrhic victory kind of way.

In unprecedented times of crisis—you know, like right now—a little bit of optimism doesn’t hurt. Over the course of the next few months, you’ll hear all sorts of different takes on the situation; some people—those who identify as “realists” but really just enjoy bumming people out—will actively speak out against positive attitudes, while others will avoid “getting their hopes up” because they don’t want to be disappointed.

But, if Bullard’s optimism is to be believed—and we’re choosing to think it is—you have full permission to let yourself hope, at least for now.

Remember, there are a couple of things you can do to bolster your immune system without medicine during this time. One of them involves keeping a positive outlook, and the other one is eating plenty of garlic; we’ve found that one accompanies the other.

This story was first published in our Real Estate section.

Continue Reading

Business Finance

Gov. Cuomo first to issue 90-day moratorium on commercial, residential evictions

(NEWS) NY Governor, Andrew Cuomo is the first state leader to put a halt to all commercial and residential payments in an effort to stem the COVID-19 crisis.

Published

on

gov cuomo

New York Governor, Andrew Cuomo is the first state governor to put a moratorium on residential and commercial evictions in response to the COVID-19 outbreak, specifically hitting pause for 90 days in his state. This is part of a $10B relief package that includes utility payments missed during this outbreak as the state (and all states) are strained by the global pandemic.

This will not only help renters to find stable footing as so many have lost their jobs overnight, but commercial renters (like restaurants) that are worried about being evicted during a time that they were shut down by the government.

Reactions have mostly been positive, but many are still pushing for a freeze on rent, essentially rent forgiveness during this period since mortgage holders can roll their 90 days on to the end of their loan term, but renters cannot.

For many landlords, rent is their exclusive income and they have very few units, but they too will be under a mortgage freeze on their buildings under this Order, providing some relief. Not to mention Tax Day just moved from April 15 to July 15.

Meanwhile, a state group, Housing Justice for All, is calling for the rehousing of every homeless individual using emergency rent assistance and in vacant homes. They cite the risk of viral spread through the homeless shelter system, as well as viral possibilities among homeless people living on the streets.

There is no known answer in this time of being tested, but a freeze on rents and mortgages in New York will likely lead to other governors taking the same route, and renters might be able to breathe a little better soon, especially those who have lost their jobs and independent contractors whose business immediately died on the vine.

We’ll be watching for other states’ reactions to rents and mortgage payments.

Continue Reading

Business Finance

COVID-19: Self employed Texans get some relief benefits

(BUSINESS FINANCE) Self employed? Worried about the corona virus hurting your business? Texas says you’re STILL eligible for cash-related COVID-19 coverage!

Published

on

self employed

When I heard ‘It’s hard being your own boss’, I thought people meant employee reviews were harder to do since you have to carry both parts of a tough conversation in your home office.

Now, watching as self-employed artists, caterers, events specialists and more are struggling in the wake of the COVID-19 pandemic, the image is less ‘Ha!’ and more ‘AH!’.

It’s bad out there, y’all. And my heart goes out virtually, as per CDC guidelines. But in every viral cloud, there’s a colloidal silver lining. In the great state of Texas, that lining is: You’re probably eligible for disaster-based unemployment.

Yes, really!

Straight from the Texas Workforce Commission’s mouth: If your employment has been affected by the coronavirus (COVID-19), apply for benefits either online at any time using Unemployment Benefits Services or by calling TWC’s Tele-Center at 800-939-6631 from 8 a.m.-6 p.m. Central Time Monday through Friday.

Now how does that cover the self-employed? Simple…kinda.

You’ll need to apply through the Disaster Unemployment Assistance and then take the extra steps of providing different proof than your 9-5 friends.

Firstly, you have to prove you’re self employed. If you’ve been paying you under the table, this is where the poop hits the fan, I’m afraid. The government will need things like (any given one of these): Insurance bills, business license, a recent ad, an invoice, or sales records.

Were you just about to start your own business when all this went down? Fortunately you’re covered too, so long as you have proof of prospective self-employment, say: The deed to a building you just bought, loan documents, ‘Grand Opening’ announcements, and so forth.

For the full list of documents that suffice, visit the TWC site directly and check what proof your pudding needs.

This situation is a Corona-cluster-cussword, but there’s help out there.

Reach out. Grab it. And then wash your hands.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!