Woodstock Institute issued the following statement today after the failure to secure cloture on the nomination of Richard Cordray as director of the new Consumer Financial Protection Bureau (CFPB):

“Today, Senator Mark Kirk cast his vote in opposition to strong consumer protections for loans made by mortgage brokers, payday lenders, and private student lenders,” said Dory Rand, president of Woodstock Institute.

The Consumer Financial Protection Bureau (CFPB) – a centerpiece of the 2010 Wall Street Reform and Consumer Protection Act– opened its doors on July 21.  It’s the nation’s first ever agency with the sole mission of preventing abusive, deceptive and discriminatory consumer products and practices.

GOP lawmakers and community bankers used Monday’s U.S. House Committee Financial Services field hearing in Chicago to air their objections to the 2010 financial overhaul, as consumer and community advocates called for a commitment from policymakers and the industry to give the new Consumer Financial Protection Agency (CFPB) time to put into place consumer protections from firms such as mortgage brokers and payday lenders that previously were not subject to federal regulation.

On Thursday, Senator Mark Kirk will make it clear where he stands on ending tricks and traps in the consumer financial marketplace when the full Senate votes on Richard Cordray’s nomination to direct the Consumer Financial Protection Bureau (CFPB). We urge him to stop his attempts to weaken the agency and confirm the nomination of Richard Cordray as the CFPB’s permanent director.

I hope that you enjoyed the Thanksgiving holiday and took a moment to actually give thanks. As the foreclosure and economic crisis drags on and many of our friends and neighbors remain unemployed or underwater on their mortgages or worse, we need to recognize and appreciate some of the good things in our lives.

The latest data on the performance of the Home Affordable Modification Program (HAMP) show that while the Chicago region has seen large increases in permanent modifications year-over-year, growth from month to month continues to be small. The rate at which servicers are adding new permanent modifications is slow enough that many homeowners in need of help will likely not receive it before the program sunsets on December 31, 2012.

Woodstock Institute and its Board of Directors are pleased to announce that Spencer Cowan will join Woodstock in December 2011 as Vice President of Applied Research.

Eliminating Fannie Mae and Freddie Mac has been a top priority for some lawmakers looking to reform the housing finance system. Congressman Scott Garrett (R-NJ) recently filed a draft bill that proposes a private alternative to the government-sponsored entities (GSEs). Congressman Garrett’s plan, The Private Mortgage Market Investment Act, was positively received by legislators on both sides of the aisle and by Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco, but serious concerns remain as to its ability to stabilize the housing market

Bank of America announced yesterday that it would rescind the introduction of a $5 monthly fee for debit card use after a vocal negative reaction from the public. This announcement comes on the heels of J.P. Morgan Chase, Wells Fargo, Suntrust, and other banks deciding to forgo newly introduced debit fees. For more than 70,000 people, however, the retraction of debit card fees was too little, too late. They have announced on Facebook that they are closing their accounts at big banks and moving to local credit unions or community banks by Saturday, November 5.

At the Federal Reserve Bank of Chicago this fall, community leaders and consumer advocates spoke out against Capital One’s proposed acquisition of ING—a deal that would create yet another too-big-to-fail bank. We thank everyone who came out and made their concerns heard.