Adam Constantine on MLK Jr.’s impact on housing equality

During the interview, Constantine explains why the industry needs to focus on evoking intentional change rather than launching lackluster initiatives.

Navigating capacity concerns amidst record-high volumes

High loan volumes continues to loom large in the new year, making the “one-stop-shop” approach to the servicing and lending process even more appealing.

Amid record-high origination volumes, mortgage fraud risk is down

CoreLogic's recently released Mortgage Fraud Report is the industry standard for nationwide fraud monitoring and analysis. Read the findings here.

How student loan debt impact homeownership

Student loan expert Catalina Kaiyoorawongs shares her practical and tangible advice for people who feel overwhelmed by their student loan debt.

Politics & MoneyInvestmentsMortgageReal Estate

Congress to consider changes to controversial CFPB complaint database

New bill would require verification of complaint details

When the Consumer Financial Protection Bureau began publishing consumers’ complaints against financial services companies several years ago, many of those companies and other industry observers took issue with the fact that the complaints were, in many cases, unverified and unproven.

But that could be about to change, thanks to a new bill that Congress is set to consider soon.

The new bill, entitled the CFPB Data Accountability Act, was introduced into the House of Representatives last week by Rep. Matt Salmon, R-AZ, who said that the CFPB’s database, in its current format, is confusing to consumers and is not as usable as it can be.

“Under current law, the CFPB launched a Consumer Complaint Database that serves as a mechanism to inform the consumer about potentially troublesome institutions,” Salmon said in a statement.

“We owe it to the American people to make this information as accurate and as clear as possible,” Salmon continued.

“Unfortunately, the current database is disorganized and does little to provide the American people with important information to inform their decision-making,” Salmon said.

“My bill would improve the current database by requiring the CFPB to verify the facts of each complaint and present this information in an aggregated format so that consumers have better access to CFPB-collected data and can make better decisions about their financial futures,” Salmon added

If enacted, the bill would require the CFPB to “verify and put into context” the consumer complaints it receives and presents to the public.

“By verifying these complaints with evidence of actual wrongdoing, Americans will have a greater understanding of various financial products and be better informed of any violations committed by these institutions,” Salmons office stated.

Specifically, per the legislation text, Salmon’s bill would require the CFPB to “verify any consumer complaint information…where the complaint alleges a violation of a law, regulation, or contractual agreement between a consumer and a covered person who offered or provided the consumer financial product or service to the consumer.”

Additionally, the CFPB Data Accountability Act would require the CFPB to present the complaint data in an aggregated format and only after the CFPB ensure that “proprietary, personal, or confidential consumer information” is not made public.

Salmon’s bill would also require the CFPB to quantify and clarify the nature and number of consumer complaints about a particular consumer financial product or service by accompanying said complaints with the total number of consumers that are using that particular consumer financial product or service.

Salmon’s bill is currently set for review by the House Financial Services Committee. If it passes out of committee, it will proceed to the full House for review.

Most Popular Articles

Prepare for the rise in mortgage rates

Economists offer their takes on how high mortgage rates will climb, how lenders will respond and what impact this will have on the housing market. HW+ Premium Content

Jan 18, 2021 By

Latest Articles

2020 ends with 3.4 million loans in delinquency

The final delinquency tally for December is in, with data revealing that by end of 2020, 1.54 million more mortgages were reported delinquent.

Jan 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please