The would make for a smoother transition.

The Consumer Financial Protection Bureau, as they describe themselves, is a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly. The Consumer Financial Protection Bureau was formed in July 2010 by the Obama administration in response to the housing market crash of 2008. The agency was formed through the Dodd-Frank Wall Street Reform and Consumer Protection Act. The agency’s focuses most on mortgages, credit cards, and student loans. The bureau is a part of the United States Federal Reserve and is also affiliated with the Treasury Department. They have jurisdiction over banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial institutions in the United States. According to themselves, they are “central mission…is to make markets for consumer financial products and services work for Americans—whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products”. The Consumer Financial Protection Bureau has recently faced controversy after the previously acting director Richard Cordray stepped down. After he resigned, he assigned a new acting director, Leandra English who was his Chief of Staff. At the same time, President Donald Trump elected another acting director, Mick Mulvaney. This means, that as of the writing of this paper, there are two acting directors of the CFPB. The former director claimed that the reason he appointed his chief of staff as acting director was because she was already involved in the CFPB, and that making her the new acting director would make for a smoother transition. Many republicans however have seen his appointment as simply and effort to block the Trump administration from putting a republican in the director’s seat. In 2006, the housing bubble reached its peak in the United States; over half of states were affected. Housing bubbles are difficult to predict and the causes of them are mostly only visible in hindsight. Several experts had predicted such a bubble before the market crash, but little was done to prevent it from happening. On December 30th, 2008, the housing market officially crashed when the Case-Shiller home price index reported the largest drop in housing prices in its history. This crash marked the end of the housing bubble and the beginning of the great recession. A main component of the crash of the housing market was the fact that many mortgage companies were financing extremely high risk mortgages and lying about how risky they were. This made the housing market extremely volatile. Not only was it volatile, but the fragility of the market was kept hidden from the public and denied by the financial institutions who were escalating the fragility of the housing market. Other causes of the housing bubble was the mania of buying houses by Americans. Many people were buying houses and getting mortgages they couldn’t afford. Financial institutions screwed these people over by giving them mortgages that they knew the people couldn’t afford, they were practically handing them out. This made the market incredibly volatile, at the fault of the banks and mortgage companies. Though the Consumer Financial Protection Bureau hasn’t been around for all that long, only around six years, the agency has managed to accomplish quite a lot. Not only have they formed new regulations for mortgages, they have heavily enforced their new rules. In regards to new mortgage regulations, they have made several significant changes. One of these is the creation of new requirements for lenders to prove the ability of borrower’s income and their ability to repay loans as well as discouraging many types of “Exotic Mortgages”, such as mortgage companies that advertised with “teaser” interest rates. Despite the major changes made by the CFPB, they have been forced to leave several holes in their protection efforts. This includes not setting minimum credit scores or requiring large down payments to mortgages. The CFPB has not only made new regulations, but has also been liberal in its enforcement of their new rules. They’ve managed to acquire over $11.7 billion dollars in penalties to redistribute to over 27 million consumers. The CFPB has been heavy-handed in enforcing its policies. They have forced Citibank to offer $700 million in compensation for misleading consumers into buying unwanted services including add-ons and identity protection. In 2014, the CFPB also made Bank of America pay over $720 million in compensation for similar offences. The CFPB has its eyes set on other issues as well, such as misleading and abusive payday lenders. As well, the CFPB aims to target overdrafting fees from banks that cost consumers around $30 billion a year. This aggressive enforcement and protection of consumer rights has not only helped millions of people, but has also hindered the abusive and manipulative practices of our country’s major financial institutions. If I had the power to implement a reform of policy initiative, I focus on breaking up monopolies set up by telecom and internet companies. In many parts of the country, people have only one option when purchasing internet and television plans. This is because in many cases, telecom companies will agree to not compete with each other in certain areas. This not only limits choice for consumers, but it undermines the free market and discourages competition. Companies can charge large amounts for mediocrity. By cracking down on these practices, the CFPB could raise competition, increase choice for consumers and through the increased competition, increase speeds and lower costs. The CFPB should target corporations who prey on consumers, abuse their powers, and undermine the free market in all industries. The CFPB’s aggressive actions to protect American consumers has created heavy pushback by major banks in the United States. The election of Donald Trump as our president has put fear into the minds of the Consumer Financial Protection Bureau. With the support of many of our country’s major financial institutions, the Trump Administration as well as the Republican ran congress have made efforts to undermine the CFPB. Their efforts may see fruition, leading to the dismantling of the Consumer Financial Protection Agency. If that happened, it would be detrimental to consumer rights, but wouldn’t take away from the excellent and important work done by the CFPB so far. Despite being a relatively young agency, the Consumer Financial Protection Agency has done significant work to enforce new and important regulations that hinder financial institutions from abusing their power, preying on the poor and financially inexperienced, and creating instability in the economy for their own benefit.