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).