Part 2 of 7: The Dodd-Frank Act and CFPB

The Dodd-Frank Act created the CFPB, one of the strongest federal agencies we've ever seen. Here's why it was created and how it works.

On part two of our series about what has changed since the mortgage meltdown, we're taking a closer look at the Dodd-Frank Act and specifically, the Consumer Finance Protection Bureau.

The Dodd-Frank Act created the strongest federal agency we've ever seen in this industry, the Consumer Finance Protection Bureau.

Think of them as the police officers of lending. What good is a rule if nobody is policing it, right? The CFPB's sole focus is to make sure that all lending laws are being followed.

In fact, if we run into anything that we think isn't fair or uncover something that might be illegal, there's always somebody to directly reach out to at the bureau level. Who did we call before? I don't know.

Not only can the CFPB enforce the rules they make, but they can also make new ones that better serve our interests.

I thought it was a good idea to let you know that somebody is paying attention to your lender and they have the strongest power that we've ever seen on a federal level. In fact, this agency is so powerful that it doesn't even answer to the president. They don't get funding from Congress, either. All their money comes directly from the Federal Reserve.

Their sole focus is to make sure you and I are protected against any unfair lending practices. If you have any questions about the CFPB or anything else, don't hesitate to give me a call or send me an email. I look forward to hearing from you soon. Stay tuned for the next part of our series!