Cordray Appointed U.S. Consumer Financial Protection Bureau Director
President Obama appointed Richard Cordray as the first director of the U.S. Consumer Financial Protection Bureau this week. The nomination of Cordray was highly debated and largely opposed by the Republican Party. The bureau was created in 2010 by the Dodd-Frank Act due to complaints that the government wasn’t doing enough to protect consumers against lenders who were doling out risky loans.
Bloomberg quoted Cordray’s speech yesterday from Washington where he said, “Consumers deserve to have someone who will stand on their side, who will protect them against fraud, and who will ensure they are treated fairly in the financial marketplace. The new consumer bureau was created to make sure these things are achieved for all Americans.”
Harvard law professor Elizabeth Warren is credited with the creation of the bureau. Among the changes that Warren hopes to see is the simplification of loan document language. Warren wrote an entry in the journal Democracy in 2007 which read, “It is impossible to buy a toaster that has a one-in-five chance of bursting into flames and burning down your house. But it is possible to refinance an existing home with a mortgage that has the same one-in-five chance of putting the family out on the street — and the mortgage won’t even carry a disclosure of that fact to the homeowner.”