Trending Now :

Re-Drafting the 2023 IPO Class The Interest-Free Installments Economy FICO Scoring Models: Explained Fed Holds Off on Rate Hike Rise of the Global Middle Class: Opportunities and Challenges Protect Yourself from Financial Scams Money Motivators Mortgage Rate Buydown What Does the Hot Inflation Report Mean for the Housing Market How Do You Build Wealth: Invest in Yourself Times Up for Programmed Money Biggest Financial Crimes: Countrywide Quantitative Tightening, Inflation, & More The Stock Market Is On Sale Investors Need to Netflix and Chill Credit Card Fixed-Interest Loans: Explained Are You Money Smart? Build Your Credit for Free Filing Your Taxes in 2022 Credit Cards that Offer 2% Cashback on All Purchases Navient Ordered to Cancel Student Loans U.S. Mortgage Interest Rates Soaring Two Big Banks Cut Overdraft Fees 2022 IPO DRAFT CLASS: Ranking the Top 10 Prospects Re-Drafting the 2021 IPO Draft All You Need to Know about Buy Now Pay Later companies Credit Card Sign-Up Bonus or SUB The Best Credit Card for the Middle-Class Make An All-cash Offer with No Cash Capitalism Always Ignores Politics All You Need to Know about the Financial crisis of 2007-2008 American Families Face Serious Rent Burden Savings Is An Expense You Can’t Build Generational Wealth If You Are Broke IT’S OFFICIAL: Robinhood is a Meme Stock All You Need to Know About Biden Mortgage Modifications & Payment Reductions Apple Card 2nd Year Anniversary: Should You Get It Now Wells Fargo to Pull Customers Personal Lines of Credit The Rise of Individual Investors The US Housing Market Is Booming. Is a Crash Ahead? Financial Literacy: How to Be Smart with Your Money Non-Fungible Token (NFT):EXPLAINED SKYROCKETED CEO PAY & LONG LINES AT FOOD BANKS Amazon Workers Want to Unionize Another Major City Piloted Universal Basic Income The New Bubble: SPACs SUBMIT YOUR PPP ROUND 2 APPLICATION BEFORE MARCH 31ST Robinhood-GameStop Hearing & Payment for Order Flow Guess Who’s Coming to Main Street Democratic Senators Say No to $15 Minimum Wage BEZOS OUT! President Biden Most Impressive Act Went Unnoticed: CFPB Biden $1.9 Trillion Stimulus Package 2021 IPO DRAFT CLASS: Ranking the Top 10 Prospects $25 Billion Emergency Rental Assistance NO, TESLA IS NOT WORTH MORE THAN TOYOTA, VOLKSWAGEN, HYUNDAI, GM, AND FORD PUT TOGETHER AMAZON TO HAND OUT ITS WORKERS $300 HOLIDAY BONUS Where Does the American Middle-class stand on Student Debt Relief? Joe Biden’s Economic Plan Explained 4 TYPES OF BAD CREDIT REPORTS AND HOW TO FIX THEM What Is the Proper Approach to Not Buy Too Much House? FISCAL STIMULUS PLANS STILL IN ACTION How to Pick Investments for Your 401(k) 10 Simple Ways to Manage Your Money Better All You Need to Know about Reverse Mortgage All You Need to Know about Wholesale Real Estate Credit card Teaser Rates AVERAGE CREDIT CARD INTEREST RATE SURGES TO 20.5 Percent Trump Signs 4 Executive Orders for Coronavirus Economic Relief The Worst American Economy in History WHY CREDIT CARDS MINIMUM PAYMENTS ARE SO LOW? 10 BIGGEST COMPANIES IN AMERICA AND WHO OWNS THEM White House Wants to End the Extra $600-A-Week Unemployment  10 Countries That Penalize Savers FEWER CREDIT CARD BALANCE-TRANSFER OFFERS ARE IN YOUR MAILBOX Private Payrolls and the Unemployment Rate SHOULD YOU BUY INTO THE HOUSING MARKET RESILIENCY? WILL WE GET A SECOND STIMULUS CHECK The Child Tax Credit and Earned Income Tax Credit THE RETURN OF BUSINESS CYCLES Should You Request a Participant Loan or an Early 401(k) Withdrawal? Homebuyers Should Not Worry about Strict Mortgage Borrowing Standards The Potential Unintended Consequences of Mortgage Forbearance All Business Owners Need to Know about the Paycheck Protection Program 10 MILLION UNEMPLOYMENT CLAIMS IN TWO WEEKS HOW WILL THE GLOBAL MIDDLE-CLASS RECOVER FROM A SECOND ECONOMIC RECESSION IN A DECADE? WILL U.S. CONSUMERS CONTINUE TO SPEND? HOW’S YOUR 401(k) PRESIDENT TRUMP SIGNS $2.2 TRILLION CORONAVIRUS STIMULUS BILL MIDDLE-CLASS NIGHTMARE: MORE THAN 3.3 AMERICAN FILED FOR UNEMPLOYMENT CLAIMS IN THE US LAST WEEK. LAWMAKERS AGREED ON $2 TRILLION CORONAVIRUS STIMULUS DEAL CORONAVIRUS STIMULUS PACKAGE FAILED AGAIN IN THE SENATE APRIL 15 (TAX DAY) DELAYED DEMOCRATS AND REPUBLICANS DIFFER ON HOW $2 TRILLION OF YOUR TAX MONEY SHOULD BE SPENT YOU CAN DELAY MORTGAGE PAYMENTS UP TO 1 YEAR, BUT SHOULD YOU? 110 Million American Consumers Could See Their Credit Scores Change The Middle-Class Needs to Support Elizabeth Warren’s Bankruptcy Plan The SECURE Act & Stretch IRA: 5 Key Retirement Changes 5 Best Blue-chip Dividend Stocks for 2020 9 Common Bankruptcy Myths 401(K) BLUNDERS TO AVOID Government Policies Built and Destroyed America’s Middle-Class & JCPenney Elijah E. Cummings, Esteemed Democrat Who Led the Impeachment Inquiry into Trump, Dies at 68 12 Candidates One-stage: Who Championed Middle-Class Policies the Most WeWork: From Roadshow to Bankruptcy Stand with the United Auto Workers Formal impeachment Inquiry into President Donald Trump America Is Still a Middle-Class Country SAUDI OIL ATTACKS: All YOU NEED TO KNOW THE FEDERAL RESERVE ABOLISHED BUSINESS CYCLES AUTO WORKERS GO ON STRIKE Saudi Attacks Send Oil Prices Spiraling REMEMBERING 9/11 What to Expect from the 116th Congress after Their August Recess Should You Accept the Pain of Trump’s Trade War? 45th G7 Summit-President Macron Leads Summit No More Upper-Class Tax Cuts Mr. President! APPLE CARD IS HERE-SHOULD YOU APPLY? THE GIG ECONOMY CREATES A PERMANENT UNDERCLASS 5 REASONS IT’S SO HARD FOR LOW-INCOME INDIVIDUALS TO MOVE UP TO THE MIDDLE CLASS ARE YOU PART OF THE MIDDLE CLASS? USE THIS CALCULATOR TO FIND OUT? WELLS FARGO IS A DANGER TO THE MIDDLE CLASS The Financialization of Everything Is Killing the Middle Class
American Middle Class

President Biden Most Impressive Act Went Unnoticed: CFPB

The estimated reading time for this post is 174 seconds

The CFPB leadership has changed.  President Biden wasted no time. In his first four days in office, he issued 30 executive orders, presidential memoranda, and agency directives on the economy, immigration, government accountability, and more.

Many of the new president’s executive orders reversed Trump’s policies, so they got most of the mainstream media coverage.  

The resignation of Kathy Kraninger from the Consumer Financial Protection Bureau (CFPB) received minimal coverage from the media. Still, that’s one of the decisions that the middle class can benefit from significantly.

The Consumer Financial Protection Bureau (CFPB)

The CFPB was created following the 2008 financial crisis.  The purpose of the watchdog agency is to assure that American consumers are protected against predatory financial products.

In July 2010, Congress passed, and President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB.  Congress wanted to create a strong and independent regulatory agency.  The director will serve a 5-year term and can only be removed for “inefficiency, neglect, or malfeasance.” 

CFPB Results

  • In 2019, CFPB received approximately 352,400 consumer complaints. 
  • The CFPB returned nearly $13 billion to 31  consumers from 2011 through 2017
  • The CFPB has a special office to protect servicemembers, veterans, and military families.

Nearly 11 million homeowners lost their homes to foreclosure during the 2007-2009 financial crisis.  A decade after the financial crisis, the middle class is still recovering. Mortgage brokers with no oversight forced working-class Americans to buy homes that they could not afford. The CFPB was created to be a guardian of middle-class Americans.

Republicans in the House and Senate started attacking the agency before Obama even signed Dodd-Frank into law, claiming that the agency was too powerful that the president should be able to fire its director at will.

The Trump Administration started to implement various actions to weaken the agency days after Donald Trump was sworn into office.  Under pressure from the Administration, Richard Cordray, the agency director, resigned.  

President Trump appointed Mick Mulvaney as the acting director.  Mr. Mulvaney was one of the Republican congressmen who thought that the agency should not exist at all.  Shortly after his appointment, he started dropping agency lawsuits filed against predatory lenders and criminal mortgage and payday lenders.

Kathy Kraninger was nominated by President Donald Trump and confirmed by the Senate in 50-49 votes.  Ms. Kraninger continued implementing policies that weaken the guard wells against consumer financial abuses.

Seila Law LLC v. Consumer Financial Protection Bureau

In 2017, Seila Law, a California-based law firm under investigation by the CFPB for allegedly charging consumers illegal upfront fees for debt-relief services, refused to turn over material the CFPB.  

Seila Law filed a lawsuit claiming the leadership structure is unconstitutional, and the court should strike down the rest of the act creating the CFPB as well.

In a June 29, 2020 opinion, the U.S. Supreme Court ruled that the president can fire the head of the CFPB at will.  However, the agency itself lives to see another day.

President Biden Appointment

Using its newly minted power granted by the U.S. Supreme Court, President Biden asked Ms. Kraninger to resign and appointed Dave Uejio to run the agency.  According to his LinkedIn profile, Mr. Uejio is a consumer watchdog veteran who has been working at the agency for nearly a decade.

With Mr. Uejio at the helm, the agency can leverage its 1500-plus employees to enforce rules on payday lending, mortgage lending, debt collection and guard the American middle class against abuses in the banking and financial services industries.


Senior Accounting & Finance Professional|Lifehacker|Amateur Oenophile

Continue Reading
Click to comment

Leave Comment

Stock News / Jan 02, 2024

Re-Drafting the 2023 IPO Class

The estimated reading time for this post is 147 seconds The Initial Public Offering (IPO)...

Stock News / Dec 29, 2023

2024 IPO Draft Class

The estimated reading time for this post is 151 seconds 2024 IPO Draft Class: Ranking...

Stock News / Dec 22, 2023

Build Wealth with Boring Investments

The estimated reading time for this post is 314 seconds Due to their boredom, long-term,...