When a government agency called the Consumer Financial Protection Bureau (CFPB) is created by Congress, one would expect that a few consumers could actually receive protection, but that hasn’t been the case with this agency’s track record of mismanagement, inefficiency and waste. The CFPB has been operating for four years now and if it were a sports team, its coach, Richard Cordray, would certainly be looking for work.
CFPB was created as part of a Washington law known as “Dodd-Frank” – named for sponsors former Sen. Christopher Dodd and former Rep. Barney Frank. When CFPB director Cordray announced the laudable goal of investigating instances ofdiscriminatory lending practices, one would have expected to see a team of crack financial analysts and consumer watchdogs identifying racially motivated lending, assessing fines and awarding money to victims. Sorry, that hasn’t happened under director Cordray’s watch.
CFPB tried developing a statistical modeling system using zip codes and last names to pinpoint minorities victimized bydiscriminatory lending practices. The resulting data was supposed to alert regulators to minorities targeted for unfair treatmentby lenders. Unfortunately the CFPB produced a garbage in - garbage out statistical report that is virtually unusable. A peer reviewed study revealed that the CFPB’s methodology for estimating African-American borrowers was off by as much as 41%. The report also said the CFPB method was, “conceptually flawed” and can, “contribute to inflated estimates of alleged consumer harm.”
http://townhall.com/columnists/kenblackwell/2015/08/15/the-consumer-financial-protection-bureau-isnt-protecting-consumers-n2039026
CFPB was created as part of a Washington law known as “Dodd-Frank” – named for sponsors former Sen. Christopher Dodd and former Rep. Barney Frank. When CFPB director Cordray announced the laudable goal of investigating instances ofdiscriminatory lending practices, one would have expected to see a team of crack financial analysts and consumer watchdogs identifying racially motivated lending, assessing fines and awarding money to victims. Sorry, that hasn’t happened under director Cordray’s watch.
CFPB tried developing a statistical modeling system using zip codes and last names to pinpoint minorities victimized bydiscriminatory lending practices. The resulting data was supposed to alert regulators to minorities targeted for unfair treatmentby lenders. Unfortunately the CFPB produced a garbage in - garbage out statistical report that is virtually unusable. A peer reviewed study revealed that the CFPB’s methodology for estimating African-American borrowers was off by as much as 41%. The report also said the CFPB method was, “conceptually flawed” and can, “contribute to inflated estimates of alleged consumer harm.”
http://townhall.com/columnists/kenblackwell/2015/08/15/the-consumer-financial-protection-bureau-isnt-protecting-consumers-n2039026
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