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FEATURE SERVICING the Key to Financial Reform's Future? Does History Hold Past Tense: As the Dodd-Frank Act reaches another birthday, a look at the past and present of industry reform initiatives may reveal the legislation's next chapter. By Ryan Schuette F the two-year anniversary of the Dodd-Frank Act, the sweeping financial reform law that spawned it. inancial reform advocates celebrated two milestones in July, marking the one-year anniversary of the watchdog Consumer Financial Protection Bureau (CFPB) and each other—and rightly so. The consumer bureau squeaked past partisan gridlock this time last year, just one year after Democrats, then in the major- ity of both houses of Congress, cleared Dodd-Frank for the president's signature. Stiff Republican opposition Their stories run parallel to Credit Gets a Beat Cop O greeted the bill then, just as it does now, and remains a bulwark against both the law and consum- er bureau today, even in the face of studies that suggest an over- whelming number of Americans agree with financial reform. Need a refresher? We take a look back at the three most noteworthy achievements and precedents from the past two years. 54 | THE M REPORT is likely the best known—and arguably most controversial. The consumer bureau managed to open its doors in July last year despite a mudslide of hearings on Capitol Hill and calls from Republicans to rope the fledgling agency into their congressional appropriations process. Acquiring the rulemaking authority for 18 consumer financial laws from seven regulatory agencies, the CFPB quickly moved to propose important new rules, with a Qualified Mortgage rule on the f all the changes to come out of Dodd-Frank, the CFPB way sometime this summer that trade groups like the Mortgage Bankers Association recently wrote could "invite litigation, increase costs, and cut off credit to too many qualified borrowers." But it doesn't take a disputed rule to garner press for the consumer bureau. Intellectual forebear and former Treasury special assistant Elizabeth Warren lost her job in July last year when President Barack Obama sidelined the controversial Harvard prof for CFPB enforcement chief Richard Cordray. The chief executive routed accusations that he gave into Republican lawmakers in January this year when he recess-appointed the former Ohio attorney general to the top job, earning the ire of Congress and kudos from many progressives. The move granted Cordray many of the powers first established under Dodd-Frank for a CFPB director, including the ability to sign off on orders and guidance for nonbank entities. conservative groups and a Texas bank—headed up by none other than the former White House lawyer for the Bush adminis- tration—seeks to overturn the CFPB as a matter of constitu- tional principle. Dodd-Frank, Interrupted? D to it in the best light by calling it a good start, much as Warren, currently running for Senate in Massachusetts, recently did with a statement that just one financial re- form law "doesn't work anymore." Those on the right frequently bill it as the worst thing since the Embargo of 1808 by labeling it a jobs-destroyer that will shrink Those on the left often refer odd-Frank has never had many friends. continues. The U.S. Chamber of Commerce vowed to take Cordray's recess appointment to court. More recent litigation by two The backlash was severe and SECONDARY MARKET ANALYTICS SERVICING ORIGINATION