Experts at the Ellie Mae Encompass conference in Las Vegas this week said lenders who interpret the recent regulatory rollback to mean they can relax their compliance efforts are wrong, HousingWire staffer Sarah Wheeler reports.
“As is true with everything in Washington right now, there is a certain degree of chaos at the bureau at the moment,” said Jack Konyk, executive director of government affairs for Weiner, Brodsky, Kider. “It’s a period of uncertainty, but it’s not a good time to relax or take risky measures.”
Konyk was referring to the Consumer Financial Protection Burerau, which is currently being led by Mick Mulvaney, the director of the Office of Management and Budget and a past critic of the CFPB’s mission.
But Konyk pointed out that Mulvaney is not dismantling the bureau, as some claim, but only scaling back its regulatory authority to match what is spelled out clearly in the Dodd-Frank Wall Street Reform Act — which is still plenty to comply with.
If the federal government loosen regulations, Konyk says, states will likely become more active.
“The states are looking harder at financial companies now. They think it’s their role to save the country from you crooks in the industry — that’s how they see it,” Kronyk said. “In some ways, it’s even riskier now.”
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