The agency, which has returned $21 billion to consumers since its inception, could lose 1,500 of its 1,700 employees, a union warned.
The full scope of the cuts was not immediately clear, but by late afternoon, hundreds of workers across all of the agency’s major divisions had received reduction-in-force notices.
The bureau, which was created by Congress in 2011, monitors banks and other lenders. Since it was established, the watchdog agency has returned $21 billion to defrauded consumers through refunds and debt cancellation, according to government figures.
If you remember the 2008 mortgage meltdown, there was no one watching the banks and mortgage lenders. The CFPB is the one entity that regulates them. This is not going to cause another housing crash. That crash was due to the way the secondary market was packaging loans and mortgage back security fraud. For a better understanding read the book or watch the movie called “The Big Short”.
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