Consumer bureau off to the races

The newly created federal Consumer Financial Protection Bureau has recently started probing non-bank financial institutions to make sure they are in compliance with federal laws, as well as hear complaints from consumers and borrowers who feel they were deceived by their lenders.

During its first three months, the bureau collected credit card compliant data and listened to more than 5,000 borrowers who came to Washington to air their grievances. The bureau has already successfully resolved 3,100 of these conflicts, and expects to handle a variety of financial complaints through the end of 2012. Now, it is focusing on companies that originate and service mortgages, to oversee their foreclosure practices and other business operations, the Chicago Tribune reported.

In addition, the U.S. Department of Justice has also formally approved the appointment of Richard Cordray as chief of the Consumer Financial Protection Bureau. The department's decision came after 98 Republican members of Congress signed a petition claiming President Obama's appointment of Cordray was an attempt to override Congress's opinion. The president appointed Cordray when many members of Congress were not in session, thus the Republicans felt he was trying to make the selection without any oversight, Reverse Mortgage Daily reported.

However, the DOJ determined the appointment was made at the same time as three leaders to the National Labor Relations Board. The department said the appointment was well within the legal power of the president, the source reported.

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