Washington, DC – Today, in reaction to the U.S. Senate Banking Committee’s vote on Senator Richard Shelby’s bill “The Financial Regulatory Improvement Act of 2015,” NCRC President and CEO John Taylor made the following statement:
“Chairman Shelby’s discussion draft undermines some key provisions enacted as part of the Dodd-Frank law that ensure the safety and soundness of the nation’s banking system and extend consumer protections. It also includes a number of stealth provisions on the Government Sponsored Enterprises that limit the paths forward for the housing finance system. As an alternative, Ranking Member Brown has put forth a more measured regulatory relief proposal that includes some additional consumer protections.”
“The U.S. Senate should tread very lightly on diminishing the role Fannie Mae and Freddie Mac play in furthering homeownership in America, a role more important than any two other institutions. Congress and the White House have already taken a major step by prohibiting predatory lending via Dodd-Frank. The next step is promoting greater transparency in lending and increasing capital reserves for Fannie and Freddie. The worst thing the Senate can do is eliminate Fannie and Freddie altogether and hope that the private market will step in to take their place. Rather than increasing homeownership, eliminating Fannie and Freddie would actually reduce it.”
On May 12, NCRC released a statement opposing the bill.
On May 20, NCRC sent a letter to the Banking Committee’s Chairman, Senator Shelby, and Ranking Member, Senator Sherrod Brown, outlining its opposition.
###
About the National Community Reinvestment Coalition (NCRC): The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America’s working families.
