COSTA MESA, Calif., Jan. 23, 2015 (GLOBE NEWSWIRE) -- Morgan Drexen, a leading provider of software and support services to businesses nationwide, (http://morgandrexen.com) today reiterated its support of the growing call among legislators, business owners, trade organizations and reporters that the Consumer Financial Protection Bureau not only needs to be reined in and held accountable, but the agency is engaging in activities that violate its own rules and regulations.
At issue this week were articles published by both the New York Times and The Washington Post, asserting that the CFPB's new 'Rate Checker' site for consumers to check mortgage rates in their area, violates multiple 'disclosure rules and regulations' put in place by the CFPB itself – the same disclosure rules and regulations the CFPB uses to hold the mortgage industry accountable and to issue multi-million dollar fines.
"This takes hypocritical to a whole new level," said Morgan Drexen CEO, Walter Ledda. "I can't imagine how the CFPB thinks it's a violation of its disclosure law to have mortgage brokers disclose mortgage interest rates without disclosing points, fees, and costs; while at the same time, the agency itself is encouraging Americans to use their new 'Rate checker' tool which doesn't disclose any points, fees, or costs at all!"
According to today's Washington Post story, David Stevens, president and chief executive of the Mortgage Bankers Association, was quoted as saying "The failure of the CFPB's rate checker to fully disclose full costs 'violates everything a lender must do' to quote rates to borrowers in compliance with the agency's own rules." He continued, "It's just a bad idea and it [the CFPB rate checker site] needs to come down."
"The 'Rate Checker' tool is certainly revealing just how problematic an agency like the CFPB can be when the agency doesn't have to report to anyone, can make its own rules and regulations without input from lawmakers, and then makes and enforces its own punishment," said Joe Lizura, Morgan Drexen's Vice President of Media. "It's no wonder that members of both houses of Congress – representing tens of millions of Americans by the way - are fighting to rein in this agency. Here it is violating its own rules and regulations – yet there is nobody who monitors it."
Also cited in numerous reports this month, are the multitude of bills and pieces of legislation being developed by members of both Congress and the Senate to somehow make the CFPB more accountable, and to have its funding tied to some type of governmental approval process. Currently the CFPB does not need to submit a budget to Congress for approval and has its funding tied to 10% of the income to the U.S. Treasury as perpetual funding, along with a director appointed by the President, who can only be removed by a presidential action.
About Morgan Drexen
Morgan Drexen (http://morgandrexensupport.com) provides integrated software systems and administrative support services to businesses and attorneys nationwide. Morgan Drexen's proprietary MDIS software improves workflow through the use of automated document management. In addition to computer technology, Morgan Drexen provides businesses with marketing, marketing support, call centers, outsourced litigation support, databases, work-product retrieval systems and cloud-computing platforms facilitated by the company's outsourced support staff.