To repair the fragile mortgage market, Consumer Financial Protection Bureau head Richard Cordray called on American consumers to unite with federal agencies to further aid the process.
While addressing a number of real estate industry journalists, Cordray noted that the recent multibillion-dollar settlement reached between mortgage servicers from the nation's largest lenders and state attorneys general is a prime example of the effort that needs to be put forth.
"You need consumers themselves to recognize and understand that protecting themselves is the most effective way that we can police this marketplace and that means voting, speaking up and banding together and having their voices heard," he said, according to HousingWire. "We've seen multiple occasions where that has been effective in the marketplace, and it makes the marketplace work."
However, despite the recent settlement, Cordray indicated that there is no end in sight for the instability of the mortgage marketplace. In addition, since mortgages account for a multitrillion-dollar industry, this sector carries enough weight to bring down the entire economy if it suffers a crisis.
Cordray said the only way to prevent this from happening again in through the implementation of further lending regulation that will give lenders and borrowers alike safety and soundness.