I would bet if we were in a conversation and I mentioned ASFA and CFPA you would give me a strange look. Yet, these two acronyms impact your daily real estate ventures and impact them like a hurricane impacts a coast line.
ASFA stands for the American Financial Services Association, a trade group of credit card issuers, auto-finance companies, mortgage lenders and other lenders. I am certain you will recognize names like CIT, CitiFinancial, Countrywide, EquiFirst, HSBC, Morgan Stanley, Wells Fargo Financial and GMAC. These were some of the biggest beneficiaries of the financial crisis.
This group of companies also had their hands in the bailout package. Maybe I should say they were in up to their necks for what they could get from the Treasury.
CFPA stands for Consumer Financial Protection Agency. This is the latest federal agency being proposed that would protect people from the sort of lending abuses that led to last year’s implosion. Guess who was in the thick of the lending abuses. If you said ASFA members, you are correct.
Keep in mind the CFPA is not an actual agency as of this writing. It is merely a proposal floating around the halls of Congress. However, when something like the CFPA is being proposed, call it smoke, there is an underlying fire.
I don’t know how big and bright the fire is or will be but if experience is any guide, you and I who call ourselves real estate investors, will have another layer of paperwork piled on top of the already existing mound. Stated another way, if your real estate owned is a forest you are about to get rich.
You’ve Been Warned
I realize a lot of people don’t like reading what they consider to be purely political posts. However, who the hell do you think piles layer upon layer of regulations, forms and requirements on top of you? Who do you think costs you the most money, time and energy? Yep, it’s the politicians.
Anyway, a happy belated holiday to everyone who celebrates Thanksgiving.