1. Administrative Agency a. Bureau of Consumer Financial Protection i. Currently I am in the process of improving my credit to purchase a home. In the past I have been misinformed and mislead by lendors thus adversely affecting my credit. If proposal is adopted, more information about the terms and condition of a loan will be required prior to a contractual agreement. 2. Proposal Description b. The Bureau of Consumer Financial Protection (Bureau) is proposing to amend Regulation Z, which implements the Truth in Lending Act (TILA).

That final rule implements sections 1411, 1412, and 1414 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which creates new TILA section 129C. Among other things, the Dodd-Frank Act requires creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for ‘‘qualified mortgages. ’ The Bureau is proposing certain amendments to the final rule implementing these requirements, including exemptions for certain nonprofit creditors and certain homeownership stabilization programs and an additional definition of a qualified mortgage for certain loans made and held in portfolio by small creditors. 3. Public Comment c. Many creditors are currently taking advantage of vulnerable consumers in financial crises by offering credit with extremely high interest rates and additional upfront costs.

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As a potential first time homebuyer there are many things that need to be made clear prior to selecting a loan. With little knowledge, as much information as possible will be beneficial to ensuring that my loan options are within a reasonable mean to repay. Many consumers find themselves swarming in debt simply because they were misinformed and did not know the extent of their limited ability to repay a particular loan. Something must also be done to cap the ncreased cost as well as address the high interest rates and payment options made available to borrowers. By encouraging more affordable repayment mechanisms and reduced interest rates, consumers are more likely to repay loans and reduce overall debt. I am glad legislatures have enacted a policy that aids consumers in being more financially informed on credit terms and lending. 4. Proposal Deadline d. Comments must be received on or before February 25, 2013. . Promulgation Process a. Once my comment has been submitted I am legally entitled to attend a hearing to further discuss my position. I am also entitled to file a petition or adjudication to ensure that there is action continuously being taken by the Bureau of Consumer Financial Protection. Once the hearing and comment period is complete I must then wait to see if the agency will address the petition and decide to modify, withdraw or adopt the regulation. b.

In the event the proposal is adopted there are five legal theories someone could use to have the regulation declared invalid and have it overturned in court: i. The Arbitrary and Capricious Standard: Find the rule is arbitrary, capricious, an abuse of discretion and in violation of some law (195) ii. Substantial Evidence Test: Find that the rule is unsupported by substantial evidence (197) iii. Constitutional Standard: Find that the rule is unconstitutional (199) iv.

The Ultra Vires Standard: Find that the rule is “beyond its powers or authority (199) v. Sunset Law: Termination of agency due to ineffectiveness after two year period (201) c. I believe the most effective theory to challenge the regulation and have it overturned is the Substantial Evidence Test. The regulation does not have supporting evidence that their specific policies will reduce debt and deter the mortgage market crisis. Although consumers are able to receive more information on their loans, the regulation does not guarantee consumers will truly benefit.