Now that February is coming to an end, I’m wondering if March will bring us some warmer weather. I realize the proverbial ground hog promised us six more weeks of winter, but I’m hoping to see some sunshine!
And of course, with better weather, everyone is gearing up for another season of buying and selling homes across East Tennessee. A new season awaits…and so does a list of things to think about and prepare for.
I was thinking about all the things that have changed since inauguration day, some good, and some…well…some that make me worry about local homebuyers. What do I mean by that?
In a shocking turn of events, the Consumer Financial Protection Bureau (CFPB) was shut down by the Department of Government Efficiency (DOGE), and now many are wondering who or what is standing guard?
After the financial crisis of 2008 the CFPB was established to stand guard against deceptive financial practices, including predatory lending. Fair lending laws were enforced, consumer education was increased, and the marketplace was monitored for unethical lending practices. All this fell into place to primarily protect all consumers, including homebuyers.
With the closure of the CFPB, homebuyers may now find themselves vulnerable to predatory practices. And now the question is: Who now holds the responsibility of protecting homebuyers in this type of environment?
Right now we just don’t know, but there are still other alternatives and resources available to homebuyers navigating the financial landscape. Some include State Regulators, Community Organizations, and Consumer Advocacy Groups.
These are all great resources, but how can your buyers protect themselves from unethical practices? Here are a few good ways:
- Extensive Research. Leveraging consumer websites and legal resources will help homebuyers understand their rights and lending options. Knowledge really is the best defense.
- Always Get Everything in Writing. Formal documentation of all loan terms, including fee breakdowns ensures that everything agreed upon verbally is captured in writing.
- Foster Relationships with Trusted Lenders. Working with lenders that have established reputations for ethical practices and transparent transactions help provide some much needed protection.
In this post-CFPB world, it’s important to remain vigilant. Honestly, education and knowledge play the most significant roles in safeguarding against predatory lending practices. And of course, if you or your client suspects these unethical practices then seek assistance immediately.
As I mentioned earlier, shutdown of the CFPB came as a shocking turn of events. But I feel we’re all responsible for holding lenders to higher and more ethical standards.
What are your views about the CFPB? What do you think about its shutdown? I’d love to hear your thoughts. I’m always available at (865) 745-5626.
I’m here to help guide you and your client through every step.
Here’s to ethical lending practices!
Food For Thought:
It’s almost time to “don your green” – yep, St. Patrick’s Day is just around the corner, and that means it’s time for the parade. Here in Knoxville, it’s been a tradition since the 1850’s. Eventually the parade was “city-sanctioned” and in 1869 its celebrated tradition began near Market Square, heading down Crooked Street, which is now Walnut Street, and proceeded throughout the downtown area. The parade died off for a short time after 1986, but the whole thing was brought back with gusto. This beloved event allows not just Irish Americans, but all Americans in East Tennessee to be Irish for a day. So head on out to the downtown. I hope to see you there. Erin go Brah!
Happenings:
Knoxville’s Winter Farmers Market is still going strong! Head out for local produce and a fun morning downtown. The market is open every Saturday from 10:00 a.m. until 2:00 p.m. in Market Square. You can find fresh fruits, veggies, eggs, honey, bread, baked goods, jams, jellies, and a whole lot more! Practically everything you want is right there. Fresh and local. That’s always the best. So come on out and stock up. Maybe I’ll see you there!