Consumer Financial Protection Bureau Oversight - 1512 Words

As you can clearly see, the number of exceptions has remained relatively low for all compliance categories. The highest number of TIL exceptions was in 2009 and resulted in a total of 65 exceptions for an exception rate of 16 percent. This graphical depiction clearly validates the continued reporting by FCA of System compliance to the FRB/CFPB. Does the System Need the CFPB? The three primary reasons the System should be excluded from Consumer Financial Protection Bureau Oversight are as follows: a) System institutions have not and do not engage in risky behaviors that contributed to the financial crisis of the early 2000s; b) FCA borrower rights regulations that protect the borrower; and, c) System institutions have traditionally generated a limited number of consumer loans. Additionally, a primary factor in the financial crisis was unsustainable mortgage lending. Subprime mortgages increased from eight percent of total mortgages in 2004 to twenty percent in 2006 with more than 90 percent of these mortgages being adjustable rate mortgages allowing borrowers to qualify for loans for which they did not have long-term repayment capacity. Furthermore, lenders lowered their loan underwriting standards especially for loan to appraised value and repayment capacity to allow borrowers to obtain significantly larger loans than in the past. System institutions did not participate in lowered lending standards. The System is prohibited by regulation from making mortgage loans withShow MoreRelatedDodd Frank Reform And Consumer Protection Act1709 Words   |  7 PagesDodd-Frank Wall Street Reform and Consumer Protection Act, but it is mostly known as Dodd-Frank. The Dodd-Frank Act is a United States federal law, which is divided into sixteen titles that places maj or regulations on the financial industry with the purpose of restraining another major financial market collapse. The stated aim of the legislation is: â€Å"To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end too big to failRead MoreThe Public Company Accounting Oversight Board958 Words   |  4 PagesSOX established the Public Company Accounting Oversight Board (PCAOB) to regulate the audit industry to oversee accounting professionals who provided independent audit reports for publicly traded companies (SEC). Key responsibilities include: registering public accounting firms and establishing audit, quality control, ethics, independence, and other standards relating to public company audits (SEC). Conducting inspections, investigations, and disciplinary proceedings of registered accounting firmsRead MoreThe Public Company Accounting Oversight1009 Words   |  5 PagesThe act is very comprehensive, ho wever, some of its main points include (Ball, 2009): †¢ Creation of the Public Company Accounting Oversight Board which regulates the public accounting/auditing industry †¢ Requires CEO’s and CFO’s to certify the financial statements are free of material misstatements and fairly represent the company’s financial position †¢ Requires a strong and independent audit committee which is to oversee the audit instead of management †¢ Places limitations on the provision non-auditRead MoreThe Dodd Frank Wall Street Reform And Consumer Protection Act Essay1486 Words   |  6 PagesA magnified outlook on The Dodd Frank Wall Street Reform and Consumer Protection Act. The united states is currently the proprietor of nearly nineteen trillion dollars in debt, and that number continues to increase to by 2.53 billion per day. With close to three hundred million people in the united states each shared citizen’s debt would be around sixty-one thousand dollars. (debt calculator website). In 2008 at the end of the George bush administration the country was said to be in the worst economicRead MoreLowering The Liquidity Of The Federal Reserve1262 Words   |  6 PagesTo combat the liquidity issues in the market, the Federal Reserve stepped in and lowered the discount window interest rate with the intent of putting liquidity back into financial markets. These lowered rates had a positive short term affect with some improvements in market liquidity. However, credit markets were still not providing the level of market liquidity that was required by businesses. The first stage of the Federal Reserve’s response was only a short term fix and did n ot adequately addressRead MoreThe Consumer Financial Protection Bureau1218 Words   |  5 Pages Overview This document describes the manner in which Vendor Oversight assigns tiers to Pacific Union Financial (â€Å"PUF† or the â€Å"Firm†) vendors and manages vendors accordingly to facilitate due diligence, maintenance and compliance with Firm, state, and Federal requirements. Background The Consumer Financial Protection Bureau (â€Å"CFPB†) is tasked with writing and enforcing rules for financial entities to protect consumers from unfair, deceptive or otherwise harmful practices by such entities. A majorRead MoreRole Of The Dodd Frank Act Essay2245 Words   |  9 Pages2008 financial crisis has many aspects. The regulatory and compliance component of the law helped to contribute to the slow economic recovery by adversely affecting the banking industry’s ability to provide credit specifically the community banks, ability to provide enough credit to the small business and start-up companies. The purpose of this paper is to show the role the Dodd Frank Wall Street Reform and Consumer Protection Act played in a slow economic recovery after the 2008 financial crisisRead MoreThe Reform And Consumer Protection Act1673 Words   |  7 Pagesimportance of a well-regulated financial system. As a response of the crisis, the United States launched the most power ful financial regulatory reform plan in the U.S. history since the 1930s: The Dodd-Frank Wall Street Reform and Consumer Protection Act (‘the Dodd-Frank Act’ or ‘the Act’). The new regulatory framework has reached to every corner of the financial sector, in order to reduce the risk and as a result to reduce systemic threats to the broader financial system. Under the Act, the roleRead MoreThe Dodd Frank Wall Street Reform And Consumer Protection Act1887 Words   |  8 PagesReform and Consumer Protection Act was signed to redesign numerous areas of the US regulatory system and to protect consumers against mortgage companies, banks, and other entities that were gambling and taking excessive risks with the consumers’ financial assets7. The act promised to restore America and create new jobs for those who had lost everything during the financial crisis of 2008. When the crisis occurred, Wall Street â€Å"did not have the tools to break apart or wind down a failing financial firmRead MoreTheu.s. Dodd Frank Wall Street Reform And Consumer Protection Act930 Words   |  4 PagesDodd-Frank Wall Street Reform and Consumer Protection Act that was signed into law in July of 2010 sparked bitter controversy. Appropriately argued by American Banker’s Capitol Hill reporter Victoria Finkle, Dodd-Frank is viewed as either a â€Å"landmark law that reined in the biggest banks† or an â€Å"economy-crippling overreach that burdened small institutions.† The Act intends to tighten financial regulation in the U.S., hoping to prevent the repeat of another financial crisis. Impetus for Dodd-Frank stemmed