By William Paige, Foreclosure Specialist at The Waterfront Project
The Consumer Financial Protection Bureau (CFPB) is under threat of closing, and as a HUD-Approved Housing Counseling Agency, we cannot stress enough how devastating this would be for Americans.
The CFPB was created after the 2008 financial crisis to protect consumers from predatory practices in the financial and mortgage market. Its absence would leave millions of people vulnerable to abuse by financial institutions.
The CFPB has been instrumental in ensuring fair practices in the mortgage market. It requires lenders to verify the borrower’s ability to repay loans, preventing the risky lending that caused the housing crisis. It also enforces rules that help struggling homeowners avoid foreclosure by requiring mortgage companies to offer sustainable solutions. Without these protections, families could face wrongful foreclosures, miscommunication about payment options, and barriers to resolving their financial hardship.
In the broader consumer finance market, the CFPB has recovered over $21 billion for consumers harmed by illegal practices. It has fought against hidden fees, predatory payday loans, and other unfair practices. If shuttered, banks and lenders could raise fees, impose deceptive terms and exploit consumers without fear of accountability.
The CFPB is a lifeline of working families. Its closure would strip away critical safeguards, leaving consumers at the mercy of powerful institutions.
We must advocate for its survival to ensure fairness and transparency in the financial marketplace.
Please read this article to learn more about this urgent update.