31
Oct

The CFPB- Like Giving Whiskey & Car Keys to Teenagers – More Good News for Lenders

Giving money and power to government is like giving whiskey and car keys to teenage boys. [P.J. O’Rourke.]

It’s a fact that things are looking really good for those of us who make it our “business to lend money to the masses!”

Yeah, it’s competitive out there! Yep, there is a lot of fraud. FTD [first time defaults] are scaling up.

CAC ‘s are on the increase. Elevate revealed a funded loan costs them $225 each. Enova is close. On the other hand, we have portfolios with <$80 CAC’s and <12% FTPD’s.

The economy is blazing along, average folks feel good about their prospects, they have jobs and they’re not hesitant to spend their money on new phones, Netflix, prepared food delivered to their homes while they kick back and watch Game of Thrones…

And we have Judge Kavanaugh & the CFPB  🙂

Judge Kavanaugh DOES NOT LIKE THE CFPB. Isn’t that a pity – I write facetiously.  

This is an excerpt from Housing Wire by Ben Lane [link below]:

“One issue that Kavanaugh is clear on is the Consumer Financial Protection Bureau.

“Kavanaugh believes the CFPB, as it is currently structured, is unconstitutional.”

“In 2016, Kavanaugh authored the Court of Appeals decision that declared the CFPB unconstitutional due to its leadership structure. The case that led to the CFPB being declared unconstitutional, which was brought by PHH, dealt with how much power the agency’s director held.

“The CFPB is the “single most powerful official in the entire U.S. Government, other than the President,” in terms of unilateral power.

“As an independent agency with just a single Director, the CFPB represents a sharp break from historical practice, lacks the critical internal check on arbitrary decision making, and poses a far greater threat to individual liberty than does a multi-member independent agency,” Kavanaugh wrote in his decision. “All of that raises grave constitutional doubts about the CFPB’s single-Director structure.”

“… but with Kavanaugh in tow, could other challenges to the CFPB be coming? They already are.”

Back in June, U.S. District Judge Loretta Preska of the New York Southern District declared the CFPB to be unconstitutionally structured for different reasons.

“Could that case end up working its way all the way up to the Supreme Court? It’s certainly possible, considering that Preska’s decision goes directly against a decision of a higher court.”

“… Justice Kavanaugh will likely vote to kneecap the bureau (or worse).”

“That sound you hear? That’s the death clock on the CFPB moving a little bit closer to midnight.”

Here’s a link to the Original Piece at Housing Wire: LINK

How to Start a Consumer Loan Business: Installment lending, car title loan lending, payday loan lending, personal loan business

Click This Image for Some Light Reading 🙂 Over Your Weekend!

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