That new agency being the Consumer Financial Protection Agency (CFPA), the creation of which passed the House Financial Services Committee just a few weeks ago.
According to Robert Freedman at NAR, Realtors® need to take note. Over at the Speaking of Real Estate blog, he writes (in a piece titled, rather clearly, "New Financial Regulator Would Impact You") that, while the new agency will focus only on financial services companies...
CFPA could still touch the real estate transaction in several ways, though. Assuming the bill passes in something close to its current form, the Real Estate Settlement Preocedures Act (RESPA), which today is overseen by HUD, would be placed under CFPA.
And
Aspects of the Home Mortgage Disclosure Act (HMDA), which real estate professionals know mostly for its role in providing data on mortgage lending, would also fall to CFPA.
Of course, the CFPA is still at least a few steps away from being born, but it pays to keep up with these things, lest you end up on the wrong side of the law. Or the regs. Or both.
Freedman includes a short video interview with NAR financial services analyst Tony Hutchinson. Next time you have a moment, check it out.
