This Supreme Court CFPB Ruling Changes EVERYTHING! | Ep. 442

in a recent 7 to2 ruling the United States Supreme Court ruled in favor of the cfpb what is this mean to lenders Banks and the consumers they serve in today's episode we'll do a deep dive ladies and gentlemen boys and girls children 18 plus you are tuned in to the lone officer podcast with me Dustin Owen and my main man JC John Coleman what popping tomorrow you and I hop on a flight to Las Vegas Nevada Mastermind Summit here we come I'm excited about the summit but honestly every time I land in Vegas you know the first thing I want to do smoke a bowl leave smoke a bowl John we know how you roll that's anywhere I go Dustin yeah but you get stuck in those airplanes for like three hours that's why I turn to my best from the magic mushroom to help me get through those tough times Dustin so the first thing you want to do as soon as you you you land is leave I mean it's like you get there you get a couple free beers you lose like $250 immediately on the blackjack table and then you're like yo I'm kind of ready to get the out of here but you know it was this event that we met Lucy the lender sh Luc it was this event that we met Courtney from the Pacific Northwest how many you think we're going to bump anybody again and so many Christian and so many other people it's been a minute I mean this was September of 2022 so yeah you're we're going on on what is that 18 19 months since we were last out there for this type of an event I'm stoked dude I'm bringing 20 people that I work with at the mortgage company are coming out there 60- shirts too many that's how many I ordered 60 t-shirts yeah we yeah we're gonna have a booth set up we're gonna Nikki's gonna be there jacine you me Mark how did we back our way what are we doing was like Hey trust me I know hey trust me we know what we're doing okay here's a booth here's you know here's some time on the St what else do you guys need oh uhoh hey I'm looking forward to this it's going to be a good event and um even the even the venue Resorts World I looked it up for the first time today I'm I'm actually looking forward to that like last time we were at The Palms and not I'm not knocking The Palms but the Palms is Off the Strip at least this new hotel is on the strip it's at the end of the strip it is at the end but still um for 125 bucks a night or 150 bucks a night you can't beat it and I'm going to be straight up honest with you I'm jonesing to gamble like I've been watching I've been watching Instagram reals on like r i don't even play roulette I've been watching roulette strategies the best I'm gonna play Blackjack three card poker and you best believe I'm going to be rolling some dice preferably I don't like to roll I want someone else with a hot hander Roll Just Let Me bet and by bet I mean like literally every every I'm going to have I'm going to have action you know who's having action the cfpb oh okay the cfpb is back in play and um this is going to be interesting like very interesting I don't know if many people know this so it's going to be a geeked out episode specifically for my mortgage um friends the friends in the mortgage industry let me just gloss over okay I'm ready now go are you ready to go no this is interesting stuff what does a cfpb stand for I ask you this every time and every time you give me a look like don't put me on a spot Consumer Financial Protection Bureau my man yeah July 21st two 2011 what is is when it came about it was um born through the Dodd Frank Act and the do Frank Act was the Congressional response to the financial collapse of 2008 wow yep and for the first time our legislators elected officials decided that we needed to do more to protect the consumer against evildoers consumers are dumb and they'll be led by any hand that feeds them so now that said the cfpb has been controversial for the past now 13 years almost and they've been controversial because they tend to create policy through enforcement okay so creating policy through enforcement my best analogy I could ever come up with imagine driving on the interstate and the the the the speed limit sign doesn't give you a number it just says drive safe so this is what the cfpb has done they've drafted these these rules and these these regulations and they're basically as clear as drive safe ambiguous there you go John that's a good word is that your word of the day I guess you remember PeeWee Herman had a word of the day remember watching that show when newor jail yeah it's called jail now no I think he passed away he passed away this year you rip Paul Rubin nonetheless imagine driving on the interstate and and being told to drive safe no we want to be told Drive 55 drive 75 Drive 880 if you're up in uh South Dakota their speed limit on their interstates 80 damn miles an hour it's a fun place to drive wow and even in some interstates I've seen a minimum like hey look you have to do at least 45 but you can't go over 70 where the CFB has said just drive safe well then if you do 85 MH you get a speeding ticket what the hell you told me to drive safe I am driving safe correct like oh well that's not safe that's reckless that's subjective what you're telling you seef okay so for the past 12 13 years the cfpb has has um been knocked they've been uh ridiculed they've made fun of they haven't been in favor of certain lending institutions banks financial institutions Etc because they don't give clear concise rules they basically give ambiguous rules and then they they allow the banks and lenders to go out and push the envelope push press the boundaries and then if they screw up they come in and get their hand slapped but sometimes getting your hand slapped could cost you tens of millions of dollars sounds just like professional NBA and NFL referees after they miss all these calls yeah how about referees I know you're not a big baseball fan but Angel Hernandez finally has retired he has been the shittiest umpire of all time yes yes so um I read that this morning and I was like thank goodness um so no so let's let's get back onto the CF PB and and so that that's that's where people's angst has has been aimed towards him in a negative manner well the reason why they were they were in front of the Supreme Court and by the way seven to two that's basically get like getting your your ass handed to you so sweep so yes so like seven to two is okay it's especially with this particular Supreme Court that we have because most things are like 5'4 okay so 7 to2 ruled in the cfp be's favor essentially there was a lawsuit stating that their funding was not constit so the mechanism and method that the that the US government uses to pay for the cfpb to be an operation was being argued that it was not constitutional well a appeals court had actually claimed and and had stated and agreed that it wasn't constitutional that's why it went to the Supreme Court Supreme Court said nope appeals court we're going to overrule you and the funding is constitutional it's also been debated whether or not having one director with was constitutional and the way that that director was put into power was constitutional so this particular Supreme Court ruling I don't recall reading anything where it talked about needing to have a three- panel uh directorship instead of a sole directorship and that the director had to be be confirmed versus the director being appointed right now it's one director and he or she because we've had had both will be appointed by the current Administration the current president okay so all that said the reason why this is of relevance in today's day and age here we are June of 2024 is you got to think if you the cfpb for the past however many months you've probably been sitting back you've probably been very reactionary but you have not been overly proactive because you're like yo I don't know if it's worth me starting this investigation I don't know if it's worth me doing these audits I don't know if it's worth me going into this particular company and asking to see their books if I'm going to be ruled to be not constitutional at which point it's just going to be a bunch of wasted resources and waste of money so they've been sitting back just kind of doing their thing anything they had to do they did but anything proactive they didn't do now all of a sudden they've just been given the green lights they've just been told Hey guys you're good to go keep Rocking In The Free World at which point lenders banks financial institutions You're Now put on notice you may have thought you were getting away with driving 90 M an hour you may have thought driving 90 miles an hour to use that same analogy was deemed safe and legal and you keep doing it because nobody has been pulling you over nobody's been flagging you down nobody's been saying otherwise in fact like in in in that example you may drive 90 but then you find out that your best friend he just got popped for $1,000 speeding ticket because he was doing 90 and you're like damn I guess I need to quit doing 90 or I need to be willing to pay $1,000 speeding ticket right so that that's how this like this regulation through enforcement this policy through enforcement kind of works it's like look I can't get all of the Bad actors but if I can pop two or three of them and word gets out that that behavior is is unacceptable then maybe the industries that the PB regulates will start to self-monitor a little bit now they're just going to get more clever and more devious everybody knows that uh to a certain degree but I don't know man you find out like your friend just got a speeding ticket aren't you a little bit more like no I'll just take a different route come on man you not what you mean that's the American way Dustin oh you got stopped on 434 I'm taking 417 yeah fair enough on my end if I find out my my buddy got got popped for a speeding ticket maybe drive slower yeah I'm going to I'm I'm going to to dial it back a little bit or just just you know get ready to Shell out a few hundred dollars that I don't have um but no so it's like everyone's been put on notice and here's what was really cool is in the mortgage industry the mortgage industry just had their um annual it's called the secondary conference so secondary is basically the business behind doing loans so sales and origination what most of us know is what you and I primarily talk about on the podcast on the YouTube channel but secondary Market is like okay what happens to that loan once it has been funded okay gets packaged and sold and turned into security and how are interest rates determined and how to mortgage mortgage companies hedge locking in loans with with making sure they also lock in their profits all secondary so it's a second largest Conference of the year it's in Manhattan every single year we're like NBA annual that you got to attend with me a several times you and I have been in San Diego we've been in Philadelphia this year we're going to Denver nope this one is always in Manhattan it's a really cool one if you get a chance to go to if you like to geek out and nerd out and typically if you're there here was my experience I had my first breakfast at 7:00 a.m. I had my second breakfast at 9:00 a.m. I met with an attorney at 10:30 I had my first lunch at at 11:30 my second lunch at 1:30 MH then I met someone for drinks at 4:00 dinner at 600 dinner at 8 drinks again at 10:00 go to bed at midnight rinse repeat for 3 Days that's awesome where do I sign up you would hate that all of that human interaction those conversations and the conversations for the most part are mostly business conversations what is T TP what is that stand for what do you do well I wish it was that typically typically with if I'm at secondary I'm representing the mortgage company right so I'm there with water stone mortgage and we're talking about you know how we can help Waterstone be a better client or or or we can talk about uh things that these particular investors can offer the water stone to help us got serve our communities better right it's one of hey how are we doing what's coming up we talk about regulatory changes technology changes compliance changes Etc business model changes you name it but the whole purpose is to check in hey how are we doing let me tell you how you're doing how can we work together more how can we work together better let's keep working together hug kiss have a drink move rinse repeat right that's kind of that is what is transpiring but at this particular event they always bring in a big speaker and they bring in people from the industry well they had they had uh Ro hit chaa so chaa is the leader of the cfpb he is the director we call him directors not leaders a director of the cfpb and he seems like by the way I'm put it out there in the universe Ro you seem like a dude I would love to have a beer with maybe even two and if you don't drink beers I'll drink old Fashions if you don't like old Fashions then I can be talked into a a Hendrick Jen martini with extra blue cheese olives but um director choer is someone that seems like I would enjoy getting to know on a personal and professional level which he has a position that he he he gets a lot of you know stares and daggers thrown his way and you know people cutting their eyes and huffing and puffing around him but it's like somebody has to play that role and the cfpb does have a a particular place in our society they are there to protect the consumers it's not just about against Bad lenders by the way like like think about um any abuses that could be done with credit cards with debt collection with um payday Advanced companies with for-profit higher education like the cfpb is to to protect the consumer um to make sure that that Corporate America is not praying on them and that things are being properly disclosed and that um no one's being taken advantage of right for the most part that's that's their mission and so he States in so he speaks right he speaks at at the um at the annual secondary and here's what he basically said for the past x amount of months we've been sitting back we've been reserved we've been plotting and planning we've been putting together our um agenda of what's priority but we haven't done a whole lot well now that the Supreme Court has ruled in our favor this is now going to give us the the it's going to open the flood gates and let us go after what it is that we think we have to look into so these are the three things that they're going to look into and this is important for the mortgage industry to be aware of and I'm going to offer you the way that it makes sense to me with a little bit of my commentary but that's about it okay so the first thing that the cfpb is really worried about as it pertains to mortgage actually is an origination it isn't on the sales side it's on the servicing side because the bulk of their complaints which they've received in their existence well over 4 million complaints Y what people love the complain John I know think about that very rarely do we as a society slow down to say thank you or you're doing a good job or thanks for delivering uh what I expected you to to deliver but the minute you don't the minute the minute you have a bad day you slip up there's human error all hell break four M 4 million complaints million that's like the new 8020 World 80% of those complaints came from 100% of the Kens 20% came from other people I love it uh absolutely love it hey what's the opposite say like what's what's what's the male version of yep and and then when they have kids they're called they're not called kids they're called kits Karen and Ken's in training wow see this goes deep Bro oh I love it okay so the first thing on the cfb's radar as it pertains to mortgage is going to be mortgage servicing MH look I got to be honest I think a lot of these complaints are are FR valid frustrations from the consumer but it just comes from a place of inexperience and in a place of of ignorance and in in the best case way because consumers don't do what I do for a living okay I have two mortgages because I own two properties and every single year I have to deal with my servicing being sold I have to deal with my escrow account being rebalanced my real estate taxes being paid my homeowners insurance being paid at the same time my taxes are going up and at the same time my my insurance has doubled and oh by the way this year was an interesting year for the Owen household I've owned the home that I currently live in for 14 years let's go it has been my homesteaded property my primary residence for all of those years all of my mail goes to this house all of the utilities are in my personal name yet somehow the county that I live in simal County Florida Simo County just went ahead and um removed my homestead exemption and as if I don't live in the house anymore you don't need this as if those utilities aren't in my name and that I don't pay them actually I don't my wife pays them but that we don't pay that bill every month on time as if that's not like that's where my driver's license is like my whole life goes to that house not anymore and all of a sudden I saw that my tax bill went from $4,800 to $9,800 okay well think about this I helped run a mortgage company for a living I've been in this industry for 20 years you know a thing or two I know a thing or two and even that was frustrating and still I don't feel like it's totally unresolved like I feel like somewhere along the lines someone owes me money or somewhere along the lines I have been refunded too much money so this has been an open query that I've been dealing with in my quote unquote free time for the past 60 to 90 days and something that I spotted no one else spotted it I spotted it and I almost overlooked it think about that like I know what I'm looking for and I almost overlooked it so the cfpb is going to look into servicing and I'm going to tell them if they're willing to call me like go roit hey um I don't think they're going to find anything that they can make it better like I just don't think it's a regulatory thing I don't think there's Bad actors I just think it's it's a cumbersome process that people don't do full-time meaning consumers don't homeowners don't and and because we include things like taxes and homeowners insurance in the payment of most mortgages it adds a a new um element yeah yeah a new wrinkle to people's payments like if if we did away with that then all of a sudden consumers would still have to deal with their insurance going up their taxes going up they would still have to deal with not having enough money to pay their taxes or their insurance and it would make it way riskier for the lending world like think about that like we as Banks and lenders the real reason why we escrow or include taxes and insurance and most people's payments is to protect us because if I lent John Coleman money and John Coleman owes me a quarter million dollars but he's not paying the tax bill the county can foreclose on that property which um no I have a legal interest in that property because JN owes me money or if Jon's not keeping that property insured and a hurricane comes through and John incurs $200,000 worth of damage on an uninsured property John just walks away and quits paying me that's so now I don't get my 250 that John owes me and the asset the collateral uh isn't worth the 250 because it requires all of this repair so that's the main reason why many mortgages include taxes and insurance it's also a convenience to the consumer because consumers it's easier to budget for four or 500 bucks a month it's a lot harder to come up with four grand in November and an extra $1,500 in in let's just call it April of the following year so it's a convenience to them like yes most lenders in Most states when they collect that money and it sits in your escrow account they're making interest on your money John now don't don't worry they're making 3% interest on your six grand like maybe 2% interest on your six grand so they're not getting rich off you but they take your sixth Grand they multiply it by a 100,000 other clients that their servicing loans for and there's some interest income come to be earned I believe in California this is a total rapit hole but in California I think uh those homeowners the lenders actually have to if they make interest remit the interest back to them like actually pay them so then you'll have certain lenders just won't put California loans in an interest bearing account because they're like look I don't want to make interest if I have to pay it to John so I might as well just put it in a non-interest bearing account so all of that said director Chopra States just a week or two ago in Manhattan at the NBA secondary conference that the first concern is with servicing I'm as dust to know and just some podcast dude that's been working in the mortgage industry for 20 years and owns two homes I'm gonna go and state I don't think there's a whole lot nefarious being done in servicing I think consumers complain because it's confusing consumers complain because counties screw things up because homeowners insurance companies drop them and other insurance companies double the premium and that impacts their payments and they get confused and and you know worried or upset but it's not the servicer fault right that's your county with the taxes that's your insurance company for whatever reasons that your insurance company um did what they did whether it's drop you or or double your premium um things that the cfpb could look at when it comes to servicing is currently servicers charge lenders I'm sorry servicers charge borrowers for a payoff statement like you want to pay off your mortgage and you need to get a payoff statement like an actual statement saying I paid my I got to pay you for that well yeah because a payoff isn't just what you what shows owing on your most recent statement because a payoff may have a a potential escrow shortage from the year prior a payoff could have an extra 21 days of interest at x amount of dollars per day so you you have to order what's called a payoff statement now the cfpb may come and look at Leonard and say that's abusive you're literally charging people $25 to $50 to produce something that they should get for free because they're a client of yours MH or there's definitely certain um I would say certain it's certain certain that's one of the many words that that ioun mispronounce all the time but there's uh there's there's going to be concern with um debt collection Pol uh practices like that's a big cfpb I'm going to come and I'm going to regulate to make sure that debt collectors aren't abusive towards those that can't make their payments like they want them to be nice polite and professional well if you don't want to be abused on the phone and pay your bills well yeah that's some people's take but you know unfortunately correct life unfortunately and here's what happens you put 100% commission salesperson on the other end and tell them they have a task to do yeah I mean they certain people unscrupulous all they want is that that that that riff that commission and the things that they say to maybe somebody who doesn't have the money it's probably not the right thing to do to the consumer so anyhow that's number one number two on on their particular list and um this is now in no particular order but the number one was definitely serviceing like hey guys that's what we're looking at as it pertains to mortgage um number two though credit reports we as an industry we're like hell yes yeah the cfpb has come out and they have stated in fact here's why I want to have a beer with this dude he even called out FICO cuz FICO was the number like the lead sponsor at this event and when when uh director Chopper was being interviewed he was talking about the amount of fee increases the credit reporting industry has levied onto the onto lenders and Banks over the past two years years and how it's impacting the accessibility and the cost of credit to the consumer he said that's something they have to look into like they're concerned is any of this with the Credit Agencies uh monopolistic does it need to be broken up is any part of these fee increases abusive and are they because they have a potential Monopoly in the industry are they taking full advantage of of that with with how they push these these increases down to the lenders and the banks and the financial institutions who then guess what they do flows downhill John and they pass it on to the consumer it gets passed on to the consumer one way or the other costs are going to go up so they're looking at that and then here's the third thing that the cfpb is going to be interested in and you and I have talked about this multiple times over the past six to now going on nine months okay loan officer compensation let's go I mean most people don't want to go there John most people who tune in this show they're saying let's effing not go there John it it needs to be discussed Dustin it does need to be discussed it needs to be addressed and what was interesting is that is that the one question was asked to the director of the cfpb which was are you currently going to look at whether or not the current lo compensation rules are just like are they Fair are they accurate and he said that is currently not on our agenda but he said he wouldn't take it off the table okay so that's a positive potential carrot to dangle pushing out to 25 26 27 but more importantly when we're talking about 2425 we understand and we recognize that there have been potentially VI violations gross negligence um Foul Play or total disregard for the rules that are put in place as it pertains to loan officer compensation and we as a cfpb now that we have been re-empower with this 7 to2 vote by the Supreme Court we will be looking at loan officer compensation we will be looking at how companies have been compensating how they've been interpreting our rules how they've been following our rules and if find any nefarious Bad actors who have been blatantly violating these are my words by the way not his this is what he implied um we do have that on our radar we do recognize that that that is something that we need to look into and those are two separate conversations and I don't know if the trade Publications that I read that covered this story really broke it out like that like it's two separate things is the cfpb willing to look at Lo compensation and make changes currently it's not on their agenda but he said he's not taking that off the table in fact he went one step further and said we're confident that there's plenty of things that were laid out in 2011 2012 that don't really apply to 2024 and 2025 so we'll be looking at all of our current policies and looking to make certain tweaks changes um in order to to better position the consumer and the banks and lenders that that um serve the consumers to win right we want consumers protected um and we want Banks and lenders to to be able to thrive and survive but so that's one coin but the other side of the coin the other side of the coin is we do recognize we do recognize that there have been and currently are lenders in operation loan officers in operation mortgage brokers in operation that that are violating loone offer compensation rules as they were laid out in 2011 and we will be enforcing some action upon those people so only time will tell because that is right now if I to say a uh a hierarchy of needs it sounds like servicing number one credit reports number two and potentially loan officer compensation and that's the enforcement of the current policies U would be number three and then finally I wanted to cover this last part about was it a win when like for the industry was it a win that the Supreme Court voted 7 to2 and the answer is yes it was and I know many people are like what do you mean the cfpb is evil the cfpb is you know they they don't you know they're mean they do this they do that it's like that's not up for debate but here's what we do know since 2010 all the way through 20 2024 that's 14 years our industry has changed everything about how we operate the technology the systems the processes vendor management documents across the board to comply with the rules of the cfpb had they been ruled to be not constitutional it would have absolutely upended the industry and it would have created chaos across the board just know that like that's a whole another topic a whole another episode just know that when you talk to the smartest of the smart people in our industry like me the PE like you John the the people that you would think would be like hell yeah abolish the cfpb when it comes down to the dollars and cents and they're looking at the numbers and we all know numbers don't lie it would have benefited nobody for the cfpb to be abolished now it could benefit all of us to have a cfpb that's willing to make adjustments willing to um work with the lenders and the and the banks that they regulate and be willing to look at their current um enforcement actions and their current way of of setting policies or even the policies that are in place and make changes where appropriately where appropriate yes that would make sense but absolutely just abolishing the cfpb would have been chaotic for the industry and nothing any one of us who works in Industry would every want to work through sounds like the bank bail out um no no no no I mean the meaning like we needed them and if like we didn't bail out the banks it would have been catastrophic for everybody so there we go Jesus Christ us yeah now I'm picking up what you're putting down yes yes like look nobody wants the US taxpayer to bail out Banks and lenders especially Banks lenders who are making risky decisions and for the years leading up to it just stacking fat I mean stack just stacking billions upon billions this money yeah but it was the it was the lesser of two evils like letting it absolutely collapse or saving it and yes when it comes to the cfpb the lesser of two evils would be to find ways to work within their parameters and with their leadership better than it would be to just go ahead and annihilate them wipe them off the face of the Earth and then go back to this world of unknown kind of wild wild west well said Dustin awesome so let's do this John if people dig what we do do you know where they can find us T tlop online.com tlop online.com here's what we want you to do we want you to First make sure you're subscribed to our YouTube channel um if you listen to us on Spotify or apple make sure you give us a festar review across the board make sure you're sharing this like often as if it's your job but instead it's your hobby because we can't pay you we have a a newsletter that's free if you go to tlop online.com you can subscribe to the newsletter it's specifically written by mortgage Lan Originators for mortgage Lan originator and then if you are a loan officer and you're looking to be a part of a community where you are coached where you are trained where you're given access to the tools and the resources that you need to become that next level success story look our way dollar for dollar pound for pound bang for buck is the best thing going in the industry let our team of top producers invest in you because you recognize iron sharpens iron on that we look forward to seeing you in Vegas if you're heading out to Mastermind Summit if not please know I will be in Jacksonville Florida two dates in June and then I'm going to be down in um Orlando for the famp event end of July beginning of August and if I get real lucky I'm going to try to make it down to the Florida Association um the mortgage Banker Association of Florida is having their annual event and if my schedule will allow for it I'll try to slide down there for a day or two but I'm not making any commitments on that and and then later in the fall we're going to go hang out with the people uh in Arkansas and Oklahoma but on that note he's John Coleman I'm Dustin know and you have just tuned in to Lan offer podcast that's all the time we have for you today we do look forward to catching you on the next episode Peace [Music]

Channel: TLOP

Views: 1,254

Keywords: Consumer Financial Protection Bureau, cfpb credit dispute, cfpb collection removal, cfpb complaint results, cfpb complaints, cfpb dispute, cfpb credit dispute results, cfpb late payment removal, cfpb inquiry removal, cfbp, supreme court news, supreme court ruling, mortgage servicing, debt collection practices, payoff statements, supreme court live today, cfpb credit repair, cfb playoff, loan officer job, loan officer podcast, loan officer trainee, mortgage rates 2024

Id: 4THN9QLT3Hw

Length: 34min 50sec (2090 seconds)

Published: Mon Jun 03 2024