Why We Need a Strong Consumer Financial Protection Bureau
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Why U.S. families need an independent Consumer Financial Protection Agency
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Transcript of Why We Need a Strong Consumer Financial Protection Bureau
Why U.S. families need an independent Consumer Financial Protection Agency
Why U.S. families need an independent Consumer Financial Protection Agency
This is no fairy-tale…
Why U.S. families need an independent Consumer Financial Protection Agency
Average “free checking” overdraft fee: $34
Why U.S. families need an independent Consumer Financial Protection Agency
Average “free checking” overdraft fee: $34
Average amount of actual overdraft: $17
Why U.S. families need an independent Consumer Financial Protection Agency
Average “free checking” overdraft fee: $34
Average amount of actual overdraft: $17
A reasonable cost for credit: Priceless
Why U.S. families need an independent Consumer Financial Protection Agency
Annual dealer interest rate overcharges (kickbacks) on car loans: $20 billion
Why U.S. families need an independent Consumer Financial Protection Agency
Annual dealer interest rate overcharges (kickbacks) on car loans: $20 billion
Extra cost to family buying $20,000 used car: $1,000 - $3,800
Why U.S. families need an independent Consumer Financial Protection Agency
Annual dealer interest rate overcharges (kickbacks) on car loans: $20 billion
Extra cost to family buying $20,000 used car: $1,000 - $3,800
Knowing the real cost of the “deal”: Priceless
Why U.S. families need an independent Consumer Financial Protection Agency
Fees paid each year by low-income families for tax refund anticipation loans (RALs): $1.6 billion
Why U.S. families need an independent Consumer Financial Protection Agency
Fees paid each year by low-income families for tax refund anticipation loans (RALs): $1.6 billion
Cost of using RAL to get your tax refund earlier: $30 per day
Why U.S. families need an independent Consumer Financial Protection Agency
Fees paid each year by low-income families for tax refund anticipation loans (RALs): $1.6 billion
Cost of using RAL to get your tax refund earlier: $30 per day
Protecting taxpayers: Priceless
Why U.S. families need an independent Consumer Financial Protection Agency
Terms of a typical payday “cash advance” loan: Total balance due in 2 weeks, 400% annual interest rate
Why U.S. families need an independent Consumer Financial Protection Agency
Terms of a typical payday “cash advance” loan: Total balance due in 2 weeks, 400% annual interest rate
Percent of payday loans where repayment puts borrower “in the red” and needing another loan : 76%
Why U.S. families need an independent Consumer Financial Protection Agency
Terms of a typical payday “cash advance” loan: Total balance due in 2 weeks, 400% annual interest rate
Percent of payday loans where repayment puts borrower “in the red” and needing another loan : 76%
Loans that don’t trap you in debt: Priceless
Why U.S. families need an independent Consumer Financial Protection Agency
Year Congress gave the Federal Reserve authority to address unfair mortgage lending: 1994
Why U.S. families need an independent Consumer Financial Protection Agency
Year Congress gave the Federal Reserve authority to address unfair mortgage lending: 1994
Year the Fed finally proposed mortgage rules: 2008
Why U.S. families need an independent Consumer Financial Protection Agency
Year Congress gave the Federal Reserve authority to address unfair mortgage lending: 1994
Why U.S. families need an independent Consumer Financial Protection Agency
Year Congress gave the Federal Reserve authority to address unfair mortgage lending: 1994
Year the Fed finally proposed mortgage rules: 2008
Why U.S. families need an independent Consumer Financial Protection Agency
Year Congress gave the Federal Reserve authority to address unfair mortgage lending: 1994
Year the Fed finally proposed mortgage rules: 2008
Fast action on abusive lending: Timeless
Why U.S. families need an independent Consumer Financial Protection Agency
Time Congress gave credit card issuers to comply with new Credit CARD Act rules: 12 months
Why U.S. families need an independent Consumer Financial Protection Agency
Time Congress gave credit card issuers to comply with new Credit CARD Act rules: 12 months
Number of new practices to increase fees & rates the issuers started during this period: 8 (and counting)
Why U.S. families need an independent Consumer Financial Protection Agency
Time Congress gave credit card issuers to comply with new Credit CARD Act rules: 12 months
Number of new practices to increase fees & rates the issuers started during this period: 8 (and counting)
Having companies live by—not outsmart—the rules: Timeless
Why U.S. families need an independent Consumer Financial Protection Agency
Number of federal regulators responsible for overseeing Countrywide Financial and Countrywide Bank: 3
Why U.S. families need an independent Consumer Financial Protection Agency
Number of federal regulators responsible for overseeing Countrywide Financial and Countrywide Bank: 3
Number of taxpayers who will foot the bill for Countrywide's losses: 138 million
Why U.S. families need an independent Consumer Financial Protection Agency
Number of federal regulators responsible for overseeing Countrywide Financial and Countrywide Bank: 3
Number of taxpayers who will foot the bill for Countrywide's losses: 138 million
Cost to taxpayers: Pricey ($5 billion)
Why U.S. families need an independent Consumer Financial Protection Agency
IndyMac Bank financial “safety rating”* (99=best, 0=worst)
Why U.S. families need an independent Consumer Financial Protection Agency
IndyMac Bank financial “safety rating”* (99=best, 0=worst)
2006 - 55 2008 - 0
*Source: Highline Financial bank analytics firm
Why U.S. families need an independent Consumer Financial Protection Agency
IndyMac Bank financial “safety rating”* (99=best, 0=worst)
2006 - 55 2008 - 0
Regulator (OTS) response: Let IndyMac hide problems with fake financial statements
*Source: Highline Financial bank analytics firm
Why U.S. families need an independent Consumer Financial Protection Agency
IndyMac Bank financial “safety rating”* (99=best, 0=worst)
2006 - 55 2008 - 0
Regulator (OTS) response: Let IndyMac hide problems with fake financial statements
Cost of IndyMac failure: $8.5 - $9.4 billion
*Source: Highline Financial bank analytics firm
Why U.S. families need an independent Consumer Financial Protection Agency
IndyMac Bank financial “safety rating”* (99=best, 0=worst)
2006 - 55 2008 - 0
Regulator (OTS) response: Let IndyMac hide problems with fake financial statements
Cost of IndyMac failure: $8.5 - $9.4 billion
Regulators who actually enforce their rules: Priceless*Source: Highline Financial bank analytics firm
Why U.S. families need an independent Consumer Financial Protection Agency
Year the OCC ruled that First Franklin Financial could ignore state lending laws: 2003
Why U.S. families need an independent Consumer Financial Protection Agency
Year the OCC ruled that First Franklin Financial could ignore state lending laws: 2003
Year that First Franklin appeared on the OCC’s “Worst 10” list of lenders producing foreclosures: 2009
Why U.S. families need an independent Consumer Financial Protection Agency
Year the OCC ruled that First Franklin Financial could ignore state lending laws: 2003
Year that First Franklin appeared on the OCC’s “Worst 10” list of lenders producing foreclosures: 2009
Time for sensible banking oversight: Now
Why U.S. families need an independent Consumer Financial Protection Agency
Size of most banks disciplined by their regulator (OCC): Small
Why U.S. families need an independent Consumer Financial Protection Agency
Size of most banks disciplined by their regulator (OCC): Small
Size of OCC banks most often the subject of complaints: Big (80% related to 10 large banks)
Why U.S. families need an independent Consumer Financial Protection Agency
Size of most banks disciplined by their regulator (OCC): Small
Size of OCC banks most often the subject of complaints: Big (80% related to 10 large banks)
Need for sensible banking oversight: Huge
Why U.S. families need an independent Consumer Financial Protection Agency
State efforts to address mortgage abuses (1992-2008): 9,000
Why U.S. families need an independent Consumer Financial Protection Agency
State efforts to address mortgage abuses (1992-2008): 9,000
Federal Reserve actions during same period: 0
Why U.S. families need an independent Consumer Financial Protection Agency
State efforts to address mortgage abuses (1992-2008): 9,000
Federal Reserve actions during same period: 0
States’ ability to fix local problems quickly: Priceless
Why U.S. families need an independent Consumer Financial Protection Agency
Percent of mortgage loans exempted from state consumer protection laws by federal regulator (OCC): 43%
Why U.S. families need an independent Consumer Financial Protection Agency
Percent of mortgage loans exempted from state consumer protection laws by federal regulator (OCC): 43%
Increase in families going into foreclosure since 2006: 189%
Why U.S. families need an independent Consumer Financial Protection Agency
Percent of mortgage loans exempted from state consumer protection laws by federal regulator (OCC): 43%
Increase in families going into foreclosure since 2006: 189%
Need for homeowner protection: Climbing
Why U.S. families need an independent Consumer Financial Protection Agency
Number of foreclosures that must be prevented in 2010 to stabilize housing prices*: 3,200,000
*Source: Credit Suisse
Why U.S. families need an independent Consumer Financial Protection Agency
Number of foreclosures that must be prevented in 2010 to stabilize housing prices*: 3,200,000
Number of distressed mortgages that have received permanent fixes** through mortgage servicer voluntary efforts: 31,382
*Source: Credit Suisse** Through 12/10/09
Why U.S. families need an independent Consumer Financial Protection Agency
Number of foreclosures that must be prevented in 2010 to stabilize housing prices*: 3,200,000
Number of distressed mortgages that have received permanent fixes** through mortgage servicer voluntary efforts: 31,382
Housing market recovery: Vital
*Source: Credit Suisse** Through 12/10/09
Why U.S. families need an independent Consumer Financial Protection Agency
Total U.S. budget deficit: $1.4 trillion*
*As of 10/30/09
Why U.S. families need an independent Consumer Financial Protection Agency
Total U.S. budget deficit: $1.4 trillion*
U.S. lost home equity wealth due to nearby foreclosures (2009-2012): $1.9 trillion
*As of 10/30/09
Why U.S. families need an independent Consumer Financial Protection Agency
Total U.S. budget deficit: $1.4 trillion*
U.S. lost home equity wealth due to nearby foreclosures (2009-2012): $1.9 trillion
Economic recovery: Priceless *As of 10/30/09
Why U.S. families need an independent Consumer Financial Protection Agency
For more info, visit www.responsiblelending.org
