In all the hoopla surrounding CFPB’s birthday and their release of the final rule on TRID, we overlooked the 5th anniversary of the Dodd-Frank Act. Let’s face it, had it not been for Dodd-Frank, there would be no CFPB. Just think of it…okay, now back to reality.
Depending on which side of isle one sits, Dodd-Frank is either a boom or a bust (Dodd-Frank Reviews). According to Rep. Jeb Hensarling (R-TX) it has made , “…our society less stable, less prosperous and less free…”.
On the other side, a report issued by the Democratic staff of the Financial Services Committee, stated, “in spite of all the efforts made by Republicans to undermine the law, Dodd-Frank has empowered regulators with tools to prevent future crisis. It also provides a road map to bridge the recovery gap.” Obviously, this reflects two very different opinions on the effects of Dodd-Frank.
One industry group weighed in. NAFCU President & CEO, Dan Berger, stating that since implementation of the law, his industry has suffered a loss of some 1250 federally insured credit unions, having an adverse effect on the services provided to consumers. It sounds to me like he does not think too highly of this rule.
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Whether you think it is good or bad for consumers, Dodd-Frank places increased regulatory requirements on lenders. As a result some, like the 1250 credit unions, have exited their business.
In some cases that may be good; a culling of the herd of sorts. Going forward those who remain must ensure that what they do is done in compliance with all the Dodd-Frank rules, to protect the consumer and, as importantly, themselves.
Happy belated anniversary – Dodd-Frank.