Tag Archives: Consumer Financial Protection Bureau (CFPB)

Bringing Back Common-Sense Guidelines

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On Monday, Breitbart posted an article reporting that President Trump has cancelled a Biden-era rule requiring banks to ignore immigration status for loan applications.

The article reports:

On Monday, the Consumer Financial Protection Bureau and the Justice Department eliminated the Biden guidelines that ordered lenders not to consider immigration status when evaluating loan and credit applications, a rule that had major implications for mortgages, credit cards, and auto loans, Bloomberg reported.

The Biden administration maintained that considering immigration status would violate anti-racism laws that ensure equal and fair lending practices.

The Biden era rules were intended to help anchor illegal and temporary visa workers into Americans’ communities, for example, by providing funds for homes, autos, and apartment leases.

But the Trump administration now says the rule went too far and was inappropriate and that considering immigration and residency status does not violate the 1974 Equal Credit Opportunity Act.

The article notes:

Biden’s rules raised many complaints when they were announced in 2023. One came from then-Ohio senator and now-Vice President JD Vance, who, when Biden made the change, said that considering immigration status as part of the loan vetting process is “nothing short of common sense.”

“A borrower’s likelihood of repayment significantly falls if there is no guarantee that they will be residing in the same community, let alone the same country or legal system,” said a Senate letter Vance, along with “every other Republican on the Senate Banking Committee,” signed in November of 2023.

“Financial institutions are right to be concerned that they may never see a return on loans issued to illegal immigrants,” then-Sen. Vance said in a press release.” If someone is deported to their home country, how is a bank in Ohio supposed recoup the loan it was forced to issue? The federal government should be cracking down on illegal immigration — not encouraging more of it.”

American citizenship should have value attached to it. Treating people who are here illegally as citizens undermines the value of citizenship. If I break into your house, I am not automatically part of your family. I have no problem with legal immigration, but people who break the law to come here are not citizens.

How To Bring Prosperity Back To Average Americans

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The American economy was designed to be based on free market capitalism. Somewhere along the way it began to look more like crony capitalism. That is what I think we have become. So how do we get back to the place where every man has an equal opportunity to become wealthy? Oddly enough, Elon Musk has a few ideas on the subject.

On Tuesday, Townhall reported:

What people actually paying attention know? Is Big Business and Big Government work in tandem – to their ongoing mutual benefit. And the country’s destruction.

Big Business writes laws making Big Government bigger.  Which Big Government then passes.  Bigger Big Government then works to make Big Business even bigger.  Bigger Big Business then writes laws… Lather, rinse, repeat…

Nauseatingly over-remunerated Big Bank employees become Big Government bureaucrats.  Who then help the Big Banks get even bigger.  Then the Big Government bureaucrats are rewarded by becoming nauseatingly over-remunerated Big Bank employees. Who then become…  Lather, rinse, repeat…

To wit: I give you the United States’ financial sector.  The Big Banks are titanic, dominant forces that control great and growing percentages of the market.  The Big Government agencies that allegedly exist to prevent Big Bank abuses?  The Federal Reserve and the Consumer Financial Protection Bureau (CFPB) chief amongst them?  Are titanic, dominant forces that control great and growing percentages of the market.

Together?  They dominate and have destroyed their huge portion of the US economy.

The article reminds us:

Dodd-Frank massively increased the power of the unconstitutional, unaccountable Fed.  And created the unconstitutional, unaccountable CFPB.     

The allegedly “independent” Fed and CFPB have now been so powerful and so unaccountable for so long?  Their bureaucrats respond with anger and revulsion to even the thought of anyone even prospectively reining them in.  

Fed chairman Jerome Powell is a government villain too cartoonish even for Ayn Rand: 

“Jay Powell says Donald Trump couldn’t fire him even if he tried….’Not permitted under the law,’ the central bank chair said Thursday in curt but clear responses to reporters who asked about his views on any legal authorities Trump might have in terms of firing or demoting him or any other top Fed officials.”  

The article concludes:

Which brings us back to the Trump Administration and its DOGE – The Department of Government Efficiency.  

One of the two co-czars of DOGE is Elon Musk.  Who has said some VERY promising things about both the CFPB and the Fed.

Musk Calls for End to CFPB

Elon Musk Reposts Call to End the US Federal Reserve Bank 

Yes, please.  And yes, please.  

The first two letter of DOGE are “DO.”  As in it let’s DO it.  Times two.

Just a reminder:

When The Government Has Lost Its Mind

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On Friday, The Daily Wire posted the following headline:

DOJ Warns Financial Institutions That They Can’t Reject Illegal Immigrants’ Credit Applications

I have a few problems with this. When I take out a loan, I have to provide my Social Security Number. Do illegals have Social Security Numbers? I have to provide a driver’s license and proof of car insurance. Do illegal immigrants have those documents?

The article reports:

The Department of Justice (DOJ) put financial institutions on notice for rejecting illegal immigrants’ credit applications.

The DOJ issued the warning in a joint statement with the Consumer Financial Protection Bureau (CFPB) on Thursday. The DOJ and CFPB said in a press release that illegal immigrants had filed complaints about credit application rejections.

“The Justice Department and CFPB are issuing this statement because consumers have reported being rejected for credit cards as well as for auto, student, personal and equipment loans because of their immigration status, even when they have strong credit histories and ties to the United States and are otherwise qualified to receive the loans,” stated the agencies.

The two agencies claimed that the Equal Credit Opportunity Act (ECOA) protections for national origin and race extended to alienage, though they admitted that no such explicit provisions spelled out their interpretation. The agencies conceded that creditors could rely on immigration status to determine repayment ability, but then cautioned against “unnecessary or overbroad reliance” on immigration status.

What’s to stop an illegal from taking out the loan, not bothering to pay it, and disappearing either back to their original country or simply within America? If you are here illegally, you might not have the documents that would allow the government to find you if you chose not to be found. Citizens can be traced by their tax returns, employers, etc.

The article concludes:

Under the ECOA, the DOJ may sue those alleged to have engaged in a pattern or practice of discrimination concerning race, color, religion, sex, sexual orientation, and gender identity in addition to national origin.

According to the DOJ’s latest annual fair lending report from 2021, there were five referrals involving claims of race or national origin discrimination. The 2022 report has yet to be issued.

CFPB’s latest fair lending report, from 2022, did mention prioritizing the financial needs of immigrants. CFPB issued four referrals involving discrimination on the basis of race and national origin in mortgage lending to the DOJ last year.

 

When do we begin to prioritize the financial needs of American citizens?