In an article for Law360, Professor David Reiss discussed the Consumer Financial Protection Bureau’s (CFPB) recent inquiries into mortgage insurance companies. The CFPB took over mortgage insurance investigations under the Dodd-Frank Act, but some industry experts believe staff at the newly created agency will be too inexperienced to be cost effective regulators.
However, Professor Reiss argued that the CFPB should continue with its enforcement measures. “There's not some obvious fix to some broken system,” he said. “I think you need enforcement in this area, because without enforcement people will come up with more and more effective ways of making sham transactions.”
Read the full article.