New consumer agency is frightfully necessary — and late---By Elizabeth Warren

[kpete]

Foreclosure crisis
New consumer agency is frightfully necessary — and late


By Elizabeth Warren
[e-mail]

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The latest disclosures are deeply troubling, but they should not come as a big surprise. For years, both individual homeowners and consumer advocates sounded alarms that foreclosure processes were riddled with problems <...>

The practices now under investigation took root and grew because there was no single federal regulator with both the responsibility and the tools to look out for consumers.

Had it existed, the new consumer agency could have stopped these problems before they multiplied. Many of the failures already admitted were not sophisticated scams that had been carefully concealed. By enforcing existing laws and involving state authorities early on, the agency could have made sure that the law was respected. No one would need to wonder whether the world of borrowing and lending works only one way: Families have to follow the legal rules, but the rules are optional for big banks.

Once it is fully operational, the new consumer agency will have supervisory authority over all large mortgage servicers. It will be able to examine them on a regular basis to make sure they follow the rules. If those servicers decide it is cheaper or faster to circumvent federal law, the consumer agency will have the tools to hold them accountable.

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Read more: http://www.miamiherald.com/2010/12/22/1991294/new-consumer-agency-is-frightfully.html#ixzz19WA17KBr

[PoliticAverse]

1. I wish her the best, but

how long before she is replaced and this agency becomes captured by the industry
it is suppose to regulate like all the others?

[DCKit]

2. +1 nt

[Lorien]

3. K & R nt

[Marr]

4. I'm very interested to see what happens here. Judging from Obama's actions up to this point,

I suspect he's going to replace her as soon as the agency is up and running. In fact, I'd bet you $5 he puts someone from one of the big investment banks in her place.

[Hugin]

5. K&R

:kick: