Consumer bureau needs oversight
I’m in the business of helping people get access to financial services they need to fulfill their lifelong endeavors, whether it’s buying a house, putting a son or daughter through college, or saving for retirement. Ten years ago, it only took about 62 pages to complete a residential mortgage at the Carlsbad National Bank. Not the same case today — at least 185 pages are involved nowadays — and here’s why this is a major problem for community banks and local economies.
Ultimately, increasing regulations for financial services and consumers has been ongoing, because the Dodd-Frank bill and the establishment of the Consumer Financial Protection Bureau has had a domino effect. Local Realtors, appraisers and title companies are spending significantly more time complying with unnecessary regulations. This means banks are having to increase service fees to cover labor and costs. Some banks are even being forced to close down branches to cover these costs or eliminate mortgage services altogether. Often, the rural areas suffer the ramifications.
For consumers, this means more time and money spent on regulatory fees and processes. I’ve even heard from a local Realtor who said there have been more contract extensions signed in one quarter than in an entire 25-year career. For the happy family or new couple looking to invest in their first home, this means higher closing costs — almost doubled in fact — and more time spent on dealing with regulatory paperwork and fees than getting into their new home.
This, however, is unfortunately the new normal for housing markets in New Mexico. The Consumer Financial Protection Bureau is not protecting the consumer by choking out local banks with increasing regulatory fees. The bureau is damaging the whole economy of local communities. I want to see Congress enforce oversight and accountability of the Consumer Financial Protection Bureau. For this, I turn to U.S. Rep. Steve Pearce, R-N.M., who has promised to cut government red tape that is hurting consumers and our local economy.