Elizabeth Warren continues to make progress on the Consumer Financial Protection Bureau. She signed a memorandum of understanding between CFPB and the states, to cooperate on oversight of businesses which provide financial products for consumers. There was substantial concern that a federal agency would kneecap state-based consumer protection efforts; Warren sees the CFPB and the state regulators as complementary. This also allows CFPB to work on oversight of non-bank lenders like payday lenders, private student lenders and mortgage servicers.
“The new consumer financial agency and the state banking regulators are forging an alliance to protect American families,” said Elizabeth Warren, special advisor to the Secretary of the Treasury on the CFPB. “This agreement allows us to bring thousands of financial service providers out of the shadows and to begin the process of ensuring that all lenders comply with the same basic rules.”
In addition, Warren signed up Holly Petraeus, the wife of the General in Afghanistan, to a position that would protect military families from predatory lending. Military families are often the most abused by lenders, many of them which position their services close to bases. I remember Holly Petraeus on a conference call when the Senate was trying to keep auto lenders under the oversight of the CFPB, talking about how military families were routinely ripped off by car salesmen. She has a passion for keeping fraudsters out of the pocketbooks of military families.
While questions remain over who will take over the CFPB come July, there’s no question that it will be handed over to them with the ability to succeed. That is, as long as the vultures sure to circle over the agency don’t have their way. For example, Bill Daley, the President’s potential choice for White House Chief of Staff, opposed the creation of the CFPB.