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‘Warren Effect’ Stymieing Financial Regulatory Relief

April 24th, 2015 Comments off

patrick mchenry r nc  credit nationalmortgagenewsMHProNews has learned from nationalmortgagenews that Rep. Patrick McHenry (R-NC) says the House passed a measure last week that would regulate how points and fees are calculated under the Consumer Financial Protection Bureau’s (CFPB) “qualified mortgage” rule, but Sen. Elizabeth Warren (D-MA) adamantly opposes a similar measure in the Senate.

He says financial reforms are being stalled in Washington by the “Elizabeth Warren phenomenon.” Rep. Maxine Waters favored the bill two years ago but he says she has yielded to pressure from other Democratic lawmakers to now oppose it, which indicates how Warren’s influence has risen. Warren said the measure is about preserving a cash cow for the mortgage industry and not about access to credit.

As for housing finance reform, he says Congress will only deal with that if the GSEs need additional funding, and that discussion should continue towards a post-GSE world. He says repealing the Dodd-Frank Act will not happen, but he thinks the possibility exists for small but significant steps in how the law is enforced, adding that bipartisan support is feasible for easing the regulatory burden on community banks. ##

(Photo credit: nationalmortgagenews--Rep Patrick McHenry)

matthew-silver-daily-business-news-mhpronews-com  Article submitted by Matthew J. Silver to Daily Business News-MHProNews.

House Financial Services Committee Voice Votes “Yes” to H.R. 1779

May 9th, 2014 Comments off

The Manufactured Housing Institute (MHI) informs MHProNews.com the House Financial Services Committee adopted, by voice vote, the Preserving Access to Manufactured Housing Act (H.R. 1779). Although the measure will not be formally approved until a recorded vote is taken, which is expected to occur the week of May 19th, the bill would amend the  Dodd Frank Wall Street Reform and Consumer Protection Act to change the criteria by which home loans are classified “high-cost” while keeping in place  strong consumer protections. The bipartisan bill is sponsored by Representatives Stephen Fincher (R-TN), Bennie Thompson (R-MS) and Gary Miller (R-CA), and has 113 co-sponsors in the House from both sides of the aisle.

The legislation would amend the thresholds by which designated small balance manufactured home loans  are classified as high cost under HOEPA while maintaining  the consumer protections from predatory lending practices under Dodd‐Frank. The measure would clarify that manufactured home salespersons cannot be considered loan originators unless they are paid by a lender or mortgage broker, a clarification without which lenders would likely be unwilling to finance manufactured home loans, making it difficult for low-to-moderate income borrowers to access financing. During the markup a number of representatives spoke in favor of the measure including Financial Services Committee Chairman Jeb Hensarling and ranking member Rep. Maxine Waters (D-CA) who indicated she would support the bill despite lingering concerns.

(Image credit: Facebook.com)

 

Consumer Financial Protection Bureau Reform Bill Passes House

February 28th, 2014 Comments off

Sponsored by House Financial Services Committee member Rep. Sean Duffy (R-WI), the Consumer Financial Freedom and Washington Accountability Act, HR 3193, passed on a mostly party-line vote, would replace the director with a five-member commission and give Congress oversight of the budget. House Financial Services Committee Chairman Jeb Hensarling (R-TX) calls it “the single most powerful and least accountable Federal agency in the history of our nation and thus demands rigorous oversight. The American people deserve better. We do need protection for consumers from Wall Street but consumers need to be protected from Washington as well,” he said. The bill would remove it from Federal Reserve control and make it a stand-alone independent agency, subject to the appropriations process like other federal agencies.

U. S. Representative Maxine Waters (D-CA), in opposing the measure, said, “The CFPB has ensured that all consumers have fair and transparent access to consumer financial products and services. It has written important mortgage rules that prevent lenders from engaging in the risky and irresponsible practices that led to the collapse of the housing market and fueled the 2008 global financial crisis.” She said its enforcement actions have resulted in over three billion dollars being refunded to nine million consumers.

Critics also complain it intends to spend $145 million on renovations to a building it does not even own. As housingwire.com tells MHProNews, HR 3193 now moves to the Democrat-controlled Senate where it faces an uphill battle. ##

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Personnel Changes Inside the Beltway

November 14th, 2012 Comments off

HousingWire reports Raj Date, deputy director at the Consumer Financial Protection Bureau (CFPB) will be leaving his post next year. As industry expert and consumer advocate, Date was the acting director from the inception of the agency in July 2011 until Richard Cordray took over the position. Mortgage Bankers Association (MBA) CEO David Stevens says Date was beneficial to the industry and the CFPB, and hopes Date is replaced with someone of equal caliber and ability. Meanwhile, leadership changes in Congress could have a large impact on the housing industry. The Senate Banking Committee has 12 Democrats and 10 Republicans with two Democrat spots open. Will Elizabeth Warren, the engineer of the CFPB, sit on this committee? Stevens points out Rep. Jeb Hensarling (R-TX) could become Chairman of the powerful House Financial Services Committee, and Rep. Maxine Waters (D.Calif.) may become the new ranking member of that committee. As MHProNews has learned, Stevens does not expect much in the way of regulatory alterations anytime soon, but is concerned about a possible new treasury secretary and the replacement for FHFA acting director Ed DeMarco.

(Photo credit: HousingWire)