Nullification of Auto Loan Rules Has Broad Implications

As we know times they are a changing. It is of increasing importance for all consumers to remain ever diligent about changes to laws that can impact our everyday lives. Here is a recent example of what may appear to be a small change to the rules governing the auto finance industry that can spill over into how mortgage consumers may be impacted in the coming days ahead.

Nullification of Auto Loan Rule Has Broad Implications” title=”Nullification of Auto Loan Rules Has Broad Implications” target=”_blank”>

From the article note that there is an expectancy of trickle down of the relaxing of protections to consumers of other financing industries:

“A Congressional Budget Office review of the CFPB rule found it was subject to Congressional review and the Joint Resolution was passed. Yesterday Mulvaney, who has frequently stated his opposition to the existence of CFPB, issued a statement thanking Congress and the President “for reaffirming that the Bureau lacks the power to act outside of federal statutes” and stating the rule was a solution in search of a problem.

Mulvaney continued, “The enactment of this Congressional Review Act (CRA) resolution does more than just undo the Bureau’s guidance on indirect auto lending. It also prohibits the Bureau from ever reissuing a substantially similar rule unless specifically authorized to do so by law.

“‘Given a recent Supreme Court decision distinguishing between antidiscrimination statutes that refer to the consequences of actions and those that refer only to the intent of the actor, and in light of the fact that the Bureau is required by statute to enforce federal consumer financial laws consistently, the Bureau will be reexamining the requirements of the ECOA.'”

The acting director said the resolution clarifies that other CFPB guidance may fall under Congressional review, something CFPB says it welcomes. It will, he says, confer with Congressional staff and federal agency partners to identify documents for submission.

We think one can draw a conclusion from this activity that Congressional nullification of CFPB rule-making will not stop with auto lending and suspect that the next rules called into question could be those dealing with loan officer compensation and loan pricing. Stay tuned.”

–Knowing you have an advocate in the process of getting home financing is of major importance. Call me anytime with questions or concerns. See how we go the extra distance for your protection and savings.

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