Elizabeth Warren forges alliance between CFPB, regulators
A team of Treasury Department officials building the Consumer Financial Protection Bureau signed a "memorandum of understanding" Tuesday pledging that the bureau, state and federal regulators will cooperate in the supervision of financial products. The CFPB, which was originated under Dodd-Frank, will launch in July and become the de facto supervisor of the mortgage industry. Officials said state regulators and the bureau are dedicated to keeping examination procedures consistent while trying to minimize the regulatory burden on lenders. State regulators and the bureau said they would consult with each other to establish these standards. Officials said after July, consumers will benefit from the partnership between the regulators and the bureau, whether they're signing a mortgage or looking to finance their children's education. Elizabeth Warren, the special adviser to the Treasury Secretary Timothy Geithner on the CFPB and whom many believed would eventually would become director of the bureau, said the new alliance was forged to protect families. No director of the CFPB has been named. "This agreement allows us to bring thousands of financial service providers out of the shadows and to begin the process of ensuring that all lenders comply with the same basic rules," Warren said. Write to Jon Prior.