This week, NCRC filed comments to the US Department of Treasury and US Department of Housing and Urban Development regarding the future of the Government Sponsored Enterprises (GSEs), the regulation of the housing finance system, and the role of government in the finance system. Click here to download the Comments as a PDF
Regulators Must Fulfill Spirit and Intent of Bill
Washington, DC – Today, John Taylor, president and CEO of the National Community Reinvestment Coalition (NCRC), will join President Obama for the signing ceremony of the financial reform bill. Taylor made this statement prior to the ceremony:
“Today’s signing of the financial reform legislation by President Obama marks the beginning of a renewed effort by the White House, Congress, regulators and by community and consumer groups like NCRC to hold Wall Street and the banks accountable to taxpayers, who bailed them out after a decade of reckless and greedy financial practices, designed solely to line their pockets. These practices led to an economic crisis unlike anything we have experienced as Americans since the Great Depression.”
Tepid Foreclosure Prevention Efforts Continue to Undermine Economic Recovery Permanent modifications disappoint, as cancellations trend substantially higher Washington DC- Today the Treasury Department and HUD released the latest numbers for the Home Affordable Modification Program (HAMP). Nearly 400,000 homeowners have been granted a permanent modification under the program, which compares to over 5.3 million foreclosure […]
Community Reinvestment Act (CRA) Interagency Joint Public Hearing
“Responsible CRA-related lending and investing has been vital for low- and moderate-income communities. Over the 13-year time period from 1996 through 2008, CRA small business and community development lending has totaled more than $1 trillion for America’s low- and moderate-income neighborhoods.” ~Josh Silver, Vice President, Research & Policy
Washington, DC – The Senate has passed the Wall Street reform bill this afternoon. John Taylor, president & CEO of NCRC made this statement regarding it passage:
“This bill represents the most significant overhaul of the financial system since the 1930s. But serious work remains; the proof of the bill’s worth will come not from what is written in the bill, but how the regulators interpret the bill, write the rules and then enforce them. Based on the job they did for the past decade, I will believe reform is here when I see it. The bill leaves too much to study, and the discretion of the existing regulators. For that reason, it’s a boon to Wall Street lobbyists, who will now be working behind the scenes to influence the regulators,” said John Taylor, president & CEO of the National Community Reinvestment Coalition. “Given the severity of the economic crisis resulting from reckless and greedy practices on Wall Street, the bill could have been justifiably stronger. This is what happens when you allow the very industry that caused the problem to buy all the front row seats at the bargaining table.”
“We’re pleased to see the creation of an independent Bureau of Consumer Financial Protection, whose sole purpose is to create and enforce rules that will protect consumers from faulty financial products like risky mortgages and high interest credit cards. But the consumer protections in the bill are not as bullet-proof as we would want. The same regulators who ignored consumer advocates’ warnings about predatory lending have veto power over the consumer agency; That club of regulators is very insular, and usually in agreement. They can kill serious reform, and the financial lobby remains much more influential with regulators than consumer advocates. And the veto standard of safety and soundness is too broad to the point of potentially including measures that affect the profitability of financial firms, even profits off of very risky practices. It’s critical that this agency get a strong director whose professional devotion is to protecting consumers, and that it remains independent from the regulators,” said Taylor.
“We’re also pleased that Congress accepted our recommendations on additional data enhancements covering home mortgage lending, including foreclosure data, and small business lending. These data enhancements will shine a powerful spotlight on banks efforts to lend for small business expansion and job creation and sustainable homeownership,” said Taylor.”
Jim Carr explains a new report showing that nearly one out of every three homes sold in the first three months of the year were foreclosures. Also, click here to access our latest study focusing on the Washington DC area foreclosures. Quicklinks to additional foreclosure resources:
Wall Street Reform Bill Passes the House
Washington, DC – Reacting to news that the House has passed the Wall Street reform bill this evening, John Taylor, president & CEO of the National Community Reinvestment Coalition (NCRC), made this statement regarding its passage:
“NCRC is very pleased to see some major steps taken to overhaul the banking system. The bill offers necessary consumer protections that would not have been passed without President Obama’s leadership. The Senate needs to act quickly to send this legislation to the President’s desk. While it’s been distressing to see the outsize influence that the Wall Street banks have on Congress, it’s time now to get this done, and to move forward with other necessary measures to clean up the mess caused by the reckless and irresponsible behavior of Wall Street.”
“The creation of the Consumer Finance Protection Bureau (CFPB) as an independent agency that will be able to create and enforce rules of the road will protect consumers from future abuses. It is critical however that this independence not be undermined by the fact that the Federal Reserve Bank will house, pay for and be part of the oversight agency that has the authority to veto decisions of the CFPB. Only time will tell as to how much influence the banking regulators and others have over this new important agency. We will be paying close attention to the implementation of the agency, to ensure it is set up in a way that maximizes its ability to protect consumers.”
Washington, DC- Early this morning, the Conference Committee passed the Financial Regulatory Reform Bill. John Taylor, NCRC’s president and CEO, made this statement regarding its passing:
“NCRC is very pleased to see some major steps being taken to overhaul the banking system. The bill offers major consumer protections that did not exist prior to President Obama’s and Barney Frank’s call for reform. The creation of the Consumer Finance Protection Bureau (CFPB) as a independent agency should be able to create rules and regulations and protect consumers from future abuses. It is critical however that this independence not be undermined by the fact that the Federal Reserve Bank will house, pay for and be part of the oversight agency that has the authority to veto decisions of the CFPB. Only time will tell as to how much influence the banking regulators and others have over this new important agency.”
Major components of the bill include:
- A strong consumer agency was created to protect consumers and enforce regulations on mortgages, credit cards and other financial products.
- Independent Funding.
- Director appointed by the President and Confirmed by the Senate.
- Enforcement of pay day lenders, and check cashiers.
Help for Homeowners:
- Assistance to unemployed borrowers facing foreclosure.
- Money provided for the neighborhood stabilization fund which helps with assistance to borrowers for foreclosed or abandoned properties.
- Funds provided for counseling (Legal Aid).