Tired of all that "small print" that's impossible to understand? Welcome the new Consumer Financial Protection Bureau!

Ever gotten a loan - only to be disgusted by the amount of "small print" accompanying paperwork that was impossible to understood? We have too, and are huge supporters of the newly created Consumer Financial Protection Bureau. This bureau was created to force lenders to provide clear, obvious information to borrowers of loans -- so that we can avoid huge housing bubbles and crashes, like the one in 2006.  Homebuyers will definitely benefit from this.


The New Yorker explains in an awesome article today how the newly launched Consumer Financial Protection Bureau will help homebuyers!  Yet there is still resistance from some lenders.  But as the article explains:


"While some bankers accept the need for consumer protection, they maintain that the Consumer Financial Protection Bureau will go too far and end up strangling financial innovation. But, over the past century or so, new regulatory initiatives have inevitably been greeted with predictions of doom from the very businesses they eventually helped. Meatpackers hated the Meat Inspection Act of 1906, but it rescued the industry from the aftereffects of the publication of “The Jungle.” Wall Street said that the creation of the S.E.C. would demolish stock trading, but the commission helped make the U.S. the world’s most liquid and trusted stock market. And bankers thought that the F.D.I.C. would sabotage their industry, but it transformed it by effectively ending bank runs."


It's time for all lenders to provide borrowers with clear, concise information about the loans they are borrowing. You can read the full article here. 





- Jyothi Ramakrishnan