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CFPB Tactics

Recorded on January 19, 2012

From The Heritage Foundation, I'm Ernest Istook.

President Obama's choice to head the Consumer Financial Protection Board wasted no time in flexing his muscles. There is a major legal cloud over everything the agency does because Obama violated the Constitution to pick its director, Richard Cordray.

Yet Cordray immediately approved massive new guidelines to govern companies that originate home mortgages but that are not already regulated as banks.

The new requirements claim to protect consumers against abusive lending practices. But they contain so much red tape that they make it more difficult than ever to make a home loan. And they add another layer of regulation on top of state laws that already must be followed. Some speculate that, in the name of protecting consumers, the federal agency may just dry up credit, making it tougher than ever to buy a home.

From The Heritage Foundation, I'm Ernest Istook.