Transparency in the modern lending era

CFPB director Richard Cordray visits 'The Daily Show'

 

 

For more of the Cordray interview segment, visit here

 

Earlier this month, we touched on mortgage regulations put in place last Friday by the Consumer Financial Protection Bureau, a new department created by the U.S. government to act as watchdogs over the financial lending sector. What exactly this means may still be a murky "alphabet soup" mystery to the average citizen.

To clarify, bureau director Richard Cordray explains its mission and responsibilities in the clip above. While the majority of lenders and brokers may already be offering clear-cut, fair deals to borrowers, the bureau aims to eliminate any unfair or fraudulent practices.

Some CFPB goals for the mortgage industry, as outlined by Cordray:

• Checking out the numbers to make sure all approved loans succeed
• Being upfront about "teaser" rates and term agreements
• No surprises or false advertising
• No debt traps
• Enforcement of faulty or predatory lenders
• Restoring any undue losses to borrowers

At Vertex, the implementation of CFPB rules has been seamless as we have always firmly believed in these fair lending practices. It is always our goal to make sure you, the borrower, are 100% clear in your loan agreement and work to make the process as smooth and transparent as possible. Should you have any questions about new rules or our policies, please do not hesitate to reach us at 303-407-0200.