Mortgage Financing Frauds in the US

Abstract

In the US, the Consumer Financial Protection Bureau (CFPB) monitors the financial institutions which sell financial products and services to consumers. CFPB ensures that the consumers of financial products receive transparent and competitive services from financial institutions. The chapter contributes to the literature on state-run consumer protection organizations. The CFPB complaint database is used to analyze the performance of CFPB and to find some real-world behaviors of financial institutions from the perceptions of financial consumers. The weaknesses of CFPB are discussed in light of the current social, political, and economic changes happening in the USA. Results show that predatory behaviour is more dominant in non-banking credit and lending institutions. During COVID-19, the people took benefit of others' misery by engaging in manipulative fraud-for-profit schemes. Overall, despite creating awareness, CFPB was not so successful in getting relief for the customer.