Solving the Post-Close Challenge with Intelligent Automation

Join our upcoming webinar as SoftWorks AI CEO and Avanze CEO explore the advances in tech that allow for greater levels of automation and cost reduction, especially in support of post-close and pre-fund review.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

The 100-years-war over real estate commissions

HousingWire plunges down the rabbit hole of residential real estate commissions, uncovering the past, present and future of this wholly unique part of the economy.

How borrower education can make housing more attainable

The current housing market is making it difficult for prospective buyers to afford a home. Housing professionals need to find ways to better meet buyer needs.

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

Fannie and Freddie set dates for their new refi option

Fannie and Freddie revealed new dates for their refi options targeted to low-income borrowers set to be available this summer.

May 05, 2021 By

Latest Articles

What a dismal jobs report means for the housing market

April’s U.S. jobs report on Friday was dismal at just 266,000 new jobs, but economists say they’re not worried about the housing or mortgage market. HW+ Premium Content

May 07, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please