“This legislation will grow economic inequality rather than our economy, as its name suggests” said John Taylor, President and CEO of the National Community Reinvestment Coalition. “In the midst of several financial scandals, politicians on both sides of the aisle have again proven that their allegiances to Wall Street far surpass their promises to Main Street.”
The bill is a major setback for enforcement of fair lending laws, it exempts 5,400 banks (85%) and 497 non-banks (48%) from having to provide better information to the public about their lending. This bill also weakens several Dodd Frank protections, including the Volcker Rule, enacted after the financial crisis to alert regulators and civil rights watchdogs to predatory banking practices. If this bill passes, policymakers and consumer rights groups will be left in the dark about the credit needs in underserved communities, where families have the most difficulty accessing mortgage credit.
“Allowing banks to circumvent these rules is an open invitation to resume risky business, for both individual customers and our entire financial system” said John Taylor.