An amendment to the Economic Development Revitalization Act (S. 782) appeared yesterday that would essentially disarm consumers’ cop on the beat, the Consumer Financial Protection Bureau (CFPB). Amendment #391, proposed by Sen. Jerry Moran (R-KS), would seriously weaken the CFPB’s ability to protect consumers—its only mandate. It puts the same regulators who failed to restrain the reckless subprime lending that led to the housing crisis in a position to paralyze the CFPB’s ability to take action against financial institutions who are harming consumers.

Last week, I highlighted how intense the battle over the implementation of financial reform has become—even more so than the fight to get it passed. The hundreds of question marks left to be answered in the Dodd-Frank Act will ultimately decide whether there will be real change that makes our financial system work better for consumers or whether it will kowtow to the interests of the financial industry.

A week after Rep. Patrick McHenry (R-NC) took Elizabeth Warren to task during a Congressional hearing and called her a liar, she’s been invited back to spar with another famously feisty opponent: Rep. Darrell Issa (R-CA). Issa’s letter to Warren says:

The Financial Times reported yesterday that the New York Fed is investigating a whistleblower letter from Goldman Sachs’ servicing unit, Litton Loan. The charge? Litton failed to review borrowers’ HAMP modifications in a “denial sweep” strategy meant to quickly work through a backlog of applications. FT reports:

In response to pressure from a customer backed by consumer and disability rights advocates, Chase Bank announced on May 13 that it would not impose its $12 monthly fee on basic checking account customers with direct deposits of at least $500 per month in aggregate from Social Security payments. This change could save customers with disabilities millions of dollars a year.

The latest data on the Obama Administration’s foreclosure prevention program show that it continues to reach Chicago area homeowners, albeit slowly. There are a few bright lights that could signal a more efficient program, but it still has a long way to go to reach a meaningful fraction of homeowners facing foreclosure.

With estimates showing a shadow inventory that numbers in the millions, it’s clear that the foreclosure crisis is not done wreaking havoc on the housing market. It seems that the ideal outcome for families, communities, and investors alike would include avoiding as many foreclosures as possible and keeping homes occupied. A number of strategies have been deployed in support of this goal, some more effective than others. One thread is common among the diverse array of approaches: the importance of HUD-certified housing counselors, who were hit with a major funding cut in the FY 2011 budget. Please take action this week to help get this funding restored for the 2012 budget.

Bank of America recently announced that it will donate 150 vacant, foreclosed properties to Chicago-area nonprofits for rehab or demolition. Housing Wire reports:

As it gets closer and closer to the July 21 deadline for the Consumer Financial Protection Bureau to get started on the business of protecting consumers, attacks on the Bureau are picking up intensity.

Don't forget--this Thursday, representatives from the U.S. Department of the Treasury, CitiMortgage, National Community Reinvestment Coalition, Community Investment Corporation, and Oak Park Regional Housing Center will debate the impact of proposed changes to the housing finance system on communities of color and low-wealth communities at a panel we're hosting at the Federal Reserve Bank of Chicago.