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Washington, DC – Today, the National Community Reinvestment Coalition released a new white paper, “A Guarantee for the Guarantee: Two Proposals to Ensure that the Future Secondary Mortgage Market Serves All Creditworthy Borrowers.” The paper introduces two policy proposals designed to promote access and ensure that the future secondary mortgage market serves all creditworthy borrowers through […]
Washington, DC – Today, the National Community Reinvestment Coalition applauded remarks from Senate Majority Leader Harry Reid on GSE reform. In a recent interview that addressed GSE reform, Senator Reid expressed the need to “protect homeownership.” “We are very glad to hear Senator Reid voice the need to protect homeownership and proceed carefully with GSE reform,” […]
Washington, DC – Today, in reaction to the news that President Obama has nominated Federal Reserve Board Governor Sarah Bloom Raskin to serve as Deputy Treasury Secretary, NCRC President and CEO John Taylor made the following statement: “Sarah Bloom Raskin is sure to be an excellent Deputy Treasury Secretary, and we urge her prompt confirmation. […]
The Consumer Financial Protection Bureau (CFPB) recently issued a series of amendments to the Ability-to-Repay rule, which is set to go into effect January 10, 2014. The rule, originally issued in January of this year, holds lenders legally responsible for acting in good faith and making a reasonable determination, before closing, that a homebuyer has […]
Washington, DC — President Obama is expected today to nominate the former Ohio state Attorney General Richard Cordray as Director of the Consumer Financial Protection Bureau (CFPB). In 2010, the National Community Reinvestment Coalition (NCRC) gave Cordray its prestigious Henry B. Gonzalez Award for outstanding public service, noting that he was a “shining example for state […]
The Impact of the Proposed Qualified Residential Mortgage Definition on Home Opportunity in America Financial institutions will be exempt from the 5 percent risk retention requirement on certain types of mortgages, known as Qualified Residential Mortgages (QRMs). QRMs contain loan terms and practices that the regulatory agencies have determined are less likely to end up […]
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).
NCRC Urges Committee Withstand Pressure to Remove Independent Appraisals, Sounds Concern on Rating Agencies’ Conflict of Interest But Praises Senate Vote on Homeowner Advocate in HAMP Program
Washington, DC (June 16, 2010) — Today John Taylor, CEO and President of the National Community Reinvestment Coalition, urged the conference committee to withstand pressure to remove independent appraisal requirements on mortgages in the financial reform bill and expressed disappointment with its failure to resolve the troubling conflict of interest between credit rating agencies and Wall Street. Taylor also urged inclusion of an Office of the Homeowner Advocate in HAMP to conduct loan modification appeals brought by homeowners and serve as a policy voice for homeowners.
Taylor said: “Financial reform cannot happen with removing the existing monetary incentives we have allowed the financial industry to build into financial products, including mortgages and the services rating agencies provide. We took a step backward yesterday by refusing to deal with the rating agencies’ conflict of interest. We cannot afford to take another step backwards by caving to pressure from the brokers and Realtors to remove independent appraisals on mortgages. Inflated valuations on homes helped blow the housing bubble bigger and bigger until it burst. To prevent another crisis, we need to remove the financial incentives to do more harm than good.”