Sen. Richard C. Shelby (R-Ala.) recently accused Warren and the CFPB of leading “a regulatory shakedown,” because of their aggressive push for strict penalties against servicers in the pending settlement negotiations.Fortunately, it sounds like Warren got in a few good licks herself:
Warren quickly encountered skepticism from House Republicans who criticized the broad powers granted to the new bureau and its seemingly untouchable budget, both of which they argued could lead to a lack of accountability and the creation of unnecessary and burdensome new regulations.
“If there had been a cop on the beat with the authority to hold mortgage servicers accountable a half dozen years ago, if there had been a consumer agency in place, the problems in mortgage servicing would have been exposed early and fixed while they were still small, long before they became a national scandal,” Warren said in testimony before a House Financial Services subcommittee. She is the Obama administration’s point person for setting up the new Consumer Financial Protection Bureau.
If anything, Warren said, the uproar over shoddy foreclosure practices illustrated the need for an agency dedicated solely to protecting ordinary borrowers from abuses by lenders.
“I am glad that the consumer agency has been able to provide assistance in this important matter,” Warren said. “I thank Congress for creating this agency to provide a voice for American families. That’s why we’re here, and that’s what we’re doing.”