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Posts Tagged ‘Senate Banking Committee’

Bill would Give a Voice to Smaller Lenders within the Consumer Financial Protection Bureau

August 17th, 2015 Comments off

cfpb_credit_cfpbA measure introduced in the Senate by U. S. Senators Mike Rounds (R-SD) and Angus King (I-ME) would give community banks, credit unions and small businesses a say in the Consumer Financial Protection Bureau’s (CFPB) rulemaking process, according to what dsnews tells MHProNews.

Known as the Bureau of Consumer Financial Protection Advisory Board Enforcement Act, S. 1963 would establish a small business advisory board within the CFPB, as well as create permanent community bank and credit union panels within the CFPB. The panels would represent members from rural and underserved areas.

Sen. Rounds, a member of the Senate Banking Committee, said, “As the CFPB continues to make decisions that affect every American, it is critical for rural areas, community banks, small businesses and credit unions to have a voice.” The CFPB has four advisory councils, only one of which—the Consumer Advisory Board– is required by Dodd-Frank. The new bill would create an additional advisory committee for small businesses, and codify two existing advisory boards, one for community banks and the other for credit unions.

Small businesses, community banks and credit unions are invaluable forces in America’s economy, and they deserve a seat at the table as the CFPB makes important and far-reaching financial decisions,” Sen. King said. “Rural communities in Maine, South Dakota, and all across the nation rely on these institutions to create jobs and grow the local economy.” This rings true, especially for manufactured home owners who often live in rural areas.

The goal is to gain regulatory relief for community banks and credit unions, two historical sources of funding for manufactured housing loans, many of which have had problems operating due to the increasing cost of compliance under Dodd-Frank regulations. Many of these smaller financial institutions have either gone bankrupt or merged with other institutions. A similar bill, H.R. 1195, passed in the House in April.

Rep. Randy Neugebauer (R-TX) said, After five long years of Dodd-Frank’s misguided regulatory assault on Main Street, I’m pleased the Financial Services Committee once again acted to provide regulatory relief for our community financial institutions and the hardworking Americans they serve. Washington’s one-size-fits-all rulemaking has shifted Dodd-Frank’s compliance costs down to many individuals and families—forcing them to absorb higher cost of credit while reducing their access to popular financial products.”  ##

(Image credit: Consumer Financial Protection Bureau)

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

Secondary Market for Manufactured Home Loans Directive Due Soon

August 13th, 2015 Comments off

mortgageorb  creditWhile the “duty to serve” mandate requiring loans be made available for manufactured home purchases has been on the books since 2008 but never enforced, it may soon see the light of day. The Federal Housing Finance Agency (FHFA) is set to require Fannie Mae and Freddie Mac to purchase manufactured home loans from lenders, thereby creating a secondary market, presumably like the one for site-built homes.

Some 2.9 million households are sited in 45,000 manufactured home communities across the nation, and this proposal would improve lending standards and credit availability for manufactured home (MH) owners, according to nationalmortgagenews. Developing a secondary market could lower finance costs and improve consumer protection for MH consumers.

Ishbel Dickens, executive director of the National Manufactured Home Owners Association, says the relationship between the MHC owner and resident is a bad business model, although many states have ordinances that protect residents, and reimburse them if they have to move. She also opposes regulatory reform that would protect the values of the four million people who live in manufactured homes valued at $20,000 or less, thus harming the people she alleges to assist.

At one point she says the manufactured home is nearly worthless after ten years. Do not say that to Cavco, or Clayton, or Deer Valley or Skyline, or any other manufacturer of HUD Code homes. Studies have shown that new manufactured homes do not depreciate any faster than traditional site-built homes.

Dick Ernst, chairman of the Manufactured Housing Institute’s (MHI) financial services committee, and a long-time veteran of manufactured home lending, says the government-sponsored enterprises (GSEs) are supposed to have been making a market for all forms of housing. While they do participate in lending to owners of MHCs, they’ve done little with individual consumers.

We are very, very close to meeting with Mr. Watt to begin serious discussions on Fannie and Freddie providing a secondary market for home-only or chattel transactions, which is a big part of our industry,” Ernst said.

Doug Ryan, director of affordable housing initiatives at the non-profit Corporation for Enterprise Development, noting one of the reforms will be an extension of leases in MHCs beyond the standard one-year, said, We do see this as an impetus for the industry to offer longer-term leases. The lease must be as long as the mortgage. We are committed to that.

Although Freddie balked at the duty to serve proposal in 2009, saying “loans not secured by land present substantially greater risk compared to land-owned homes,” and that the availability of mortgage insurance is uncertain, the FHFA under the direction of Mel Watt will likely prevail.

Meanwhile, as of Jan. 2014 chattel loans are now under the Home Ownership and Equity Protection Act (HOEPA), but manufactured home loans of $20,000 or less are not economical to make under the new rules, depriving approximately 1.7 million owners of MH the ability to finance the sale of their homes. It is not profitable for lenders to make these types of loans.

As MHProNews knows, lenders are thus pushing legislation in congress, the Preserving Access to Manufactured Housing Act, which will raise the HOEPA threshold for smaller loans and which the House passed in April. The Senate version passed the Senate Banking Committee but has yet to reach the Senate floor. Consumer groups, however, oppose this legislation because of the higher interest rate.

At a Senate Banking Committee hearing, Senators Tom Cotton (R-AR) and Bob Corker (R-TN) told CFPB Director Richard Cordray that families in rural areas often depend upon MH as affordable housing. Said Sen. Cotton, In rural areas, there is not a lot of new single-family homes or a large stock of multifamily rental units.

Cordray responded, “I do remain concerned that credit is tight at the lower dollar level. I think we should look at it some more. Maybe there should be changes there.

For L. A. “Tony” Kovach’ thehill blogpost, Regulations for Manufactured Home Loans, which documents the  continuing need for Congressional action, please click here. ##

(Image credit: mortgageorb)

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

Help Ensure Passage of The Preserving Access to Manufactured Housing Act

July 24th, 2015 Comments off

senate banking committee  mbaa  orgThe Manufactured Housing Institute (MHI) informs MHProNews on Thursday, the Senate Appropriations Committee passed its Fiscal Year 2016 Financial Services and General Government Appropriations bill, which includes the Preserving Access to Manufactured Housing Act (S. 682/H.R. 650) per Senate Banking Committee Chairman Richard Shelby’s (R-AL) request.

While passage of the language from S.682 by the Senate Appropriations Committee is another step in the legislative process, it was approved along partisan lines with cosponsors including Thad Cochran (R-MS), Chairman of the Senate Appropriations Committee, and John Boozman (R-AZ), Chairman of the Financial Services and General Government Appropriations Subcommittee. Other Appropriations Committee cosponsors are: Lamar Alexander (R-TN), Shelley Moore Capito (R-WV), Steve Daines (R-MT), John Hoeven (R-ND), and James Lankford (R-OK).

Although U. S. Treasury Secretary Jacob Lew says he will recommend a veto of any legislation that alters the Dodd-Frank Act, Banking Committee Ranking Member Sherrod Brown (D-OH) may be willing to include modest changes to Dodd-Frank. In any case, it is crucial to the industry to keep the dialogue going. MHI says, “As the legislative process continues, we must work to ensure the Preserving Access to Manufactured Housing Act continues to be a part of this dialogue and that language is included in the final Dodd-Frank Act reform package that is passed by Congress.

MHI reminds us there are powerful consumer groups and other forces working to defeat The Preserving Access to Manufactured Housing Act, and it is incumbent on members of our industry to contact our Representatives and Senators to remind them of the importance of this legislation to their constituents. U. S. Representatives will working from their district offices from Aug. 3 to Sept. 7; Senators will be in their state offices from Aug. 10 to Sept. 7. Even if you have reached out to them before, it helps to follow up again during the recess. This is an absolutely critical time, and you can make the difference.

For assistance in making appointments to visit yur Congressional members Simply contact Leah Kehoe in MHI’s Government Affairs department at (703) 229-6207. ##

(Image credit: u.s.senate.gov)

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

Senate Banking Committee Passes Manufactured Housing Finance Reform

May 21st, 2015 Comments off

senate banking committee  mbaa  orgThe Manufactured Housing Institute (MHI) informs MHProNews that the Senate Banking Committee passed regulatory relief legislation that had been drafted by Committee Chairman Richard Shelby (R-AL). The 12-10 vote along party lines represents the most significant change to Dodd-Frank since it was enacted.

Section 108 of the bill includes provisions that expand access to affordable mortgage loans for manufactured home buyers, mirroring The Preserving Access to Manufactured Housing Act (S.682/H.R.650) that was passed by the House in April. The measure eases restrictions on lenders who make smaller manufactured home loans, and allows manufactured home retailers to provide information about potential lenders to their customers. Section 108 also preserves protections for the consumer such as the QM Ability to Repay and transparency of the transaction.

MHI reminds industry personnel of the importance of preserving Section 108, and the need to garner support for S.682 from senators who are not on board in the face of what is expected to be massive misinformation coming from the mainstream media and consumer groups to defeat the bill. Manufactured housing remains the largest source of unsubsidized affordable housing in the U. S. Unintended federal regulations have pushed lenders away from the market, harming consumers by making it more difficult for them to finance the purchase of MH.

Additionally, not only are consumers of manufactured homes stifled by the suffocating federal regulations. The workforce that builds and markets MH could create thousands of added jobs to the employment rolls, which in turn would provide millions in additional taxes to local, state and federal coffers.

The sense of urgency in contacting your senator cannot be overstated. Send an email to your senators by clicking this button, which will send a pre-drafted email to both of your senators. Or call the capital switchboard at (202) 224 3121 to obtain the phone number of both of your senators.

Many senators will be in their state offices during the Memorial Day work period which will allow you to visit them in person. ##

(Image credit:us.gov.senate)

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

Will Matt Drudge, Fox or CNN Spotlight Unfair Challenges Harming Millions of Manufactured Home Owners?

May 20th, 2015 2 comments

 

Mike-Baker-SeattleTimes-Daniel-Wagner-CenterForPublicIntegrity-hr650-s682-preserving-access-manufactured-housing-act-corrected-mhpronews-com-

Correction on this photo, an earlier version did not have the proper image of Mike Baker, left.

The Seattle Times/Center for Public Integrity has allegedly targeted Clayton Homes and Berkshire-Hathaway affiliated finance companies in an attempt to derail much needed reforms to Dodd-Frank which harm millions of manufactured home (MH) owners and thousands of MH businesses.

Mike Baker and Daniel Wagner – writers of the Seattle Times articles, done in conjunction with the Center for Public Integrity – used shock tactics prior to the House of Representatives vote to attempt to derail the now-passed HR 650, which enjoyed bi-partisan support.

More recently, that writing duo turn on Warren Buffett’s firms again, in advance of a Thursday May 21st vote in the Senate Banking Committee that will include industry sought relief (S 682) from the Consumer Financial Protection Bureau regulations. Industry professionals say that The Preserving Access to Manufactured Housing Act, would mitigate the harm done to the value of millions of low-cost manufactured home owners by the unintended consequences of Dodd-Frank.

It might take a link by billion-plus monthly page views Drudge Report, or media mavens like Fox or CNN, to right the imbalanced coverage spawned by Baker’s and Wagner’s questionable journalism.

Writing in the Seattle Times, Baker says that the default rate on manufactured homes is higher than conventional housing, and uses pejorative terms about the loans such as “predatory” and “risky.” But should 97 home buyers be barred home ownership via financing others won’t offer, so that the 3 who fail in a year be spared their loss?

As a comparison, should millions be stopped from working because a small minority might quit or lose their jobs? Should subscribers to the Seattle Times digital or print publications be barred from buying their brand of news, because some every year will stop paying them? Should their publication be barred from selling ads because some advertisers will stop using them every year?

Yet that is kind of reasoning being used by Baker and Wagner. Their self-evident goal is an attempt to stir up enough shock value that blurs their use of faulty or circle reasoning, aimed at undermining support for much needed Dodd-Frank reforms.

Real Harm to Millions of Real Home Owners and Thousands of Businesses

The Seattle Times and the Center for Public Integrity (CPI) fail to balance their report by pointing out that the loss of lending that has taken place is harming the value of the lowest cost manufactured homes.

Some 20% of the homes that 20 million manufactured home owners live in would sell for under $20,000, the mark that 21st Mortgage Corporation set below which they could not safely make a loan and still hope to profit. With 8.8 million manufactured homes and pre-HUD Code mobile homes in the U.S., that 20% would represent about 1,760,000 manufactured/mobile homes (MH).

Since most MH owners live in their homes an average of about 10 years, millions may not yet realize they are harmed.

Comrades in Arms Against Reform?

Organizations like the Center for Enterprise Development (CFED) are ducking tough questions from MHProNews. Meanwhile, CFED’s Doug Ryan willingly comments to the Seattle Times or OZY Media, why? Are his comments made to other media a desperate effort to shock enough people with headlines and stories that don’t stand up well to close scrutiny? Aren’t CFED and Ishbel Dickens led National Manufactured Home Owners Association (NMHOA) harming the very home owners they claim to be advocating for? Is their ideological stance more important to them than the realities on the ground caused by the polices they advocate?

Dickens sent MHProNews an emailed reply, saying she was on vacation, and thus could not answer questions. Her “vacation” ends after the Senate vote. She can email that she is on vacation, but can’t email a simple reply on the impact of current CFPB regulations on the values of millions of manufactured homes? Or how publishers such as OZY Media are arguably harming the value of MH owners, by using improper and derogatory terminology?

CFPB Regulations harms all current Manufactured Home Lenders

By spotlighting Berkshire-Hathaway affiliated companies, Baker and Wagner are allegedly attempting to derail needed reforms of Dodd-Frank, that impact manufactured home owners and every lender in the manufactured housing space.

don_glisson_2Triad Financial Corporation is a competing company to 21st Mortgage. Triad’s President and CEO, Don Glisson Jr., has told MHProNews that his firm’s costs have skyrocketed since CFPB regulations have gone into effect.

Glisson said, “Triad has been the leading lender in the “A” credit market for over 50 years and I have personally been with the company for over 30 years. Regulations have always been a fact of life for us, but our compliance costs have quadrupled in the past 3 years alone.”

Another industry lender, formerly with US Bank, told MHProNews off-the-record that their bank’s manufactured housing loan program was profitable. But the high costs of regulatory compliance, coupled with low loan volume, caused U.S. Bank to end their manufactured housing lending program. That mirrors the official statement made by the bank when they pulled out of manufactured home lending in November, 2014.

A third manufactured home lender said off-the-record that they are glad 21st Mortgage and Vanderbilt Mortgage and Finance (VMF) make the loans they do. Why? Because in the wake of the 2008 financial collapse, loans on manufactured homes originated by 21st and VMF were crucial to the survival of thousands of MH Industry companies, which included hundreds of independent operations not owned by Berkshire-Hathaway.

Doesn’t the dismal failure to report in a balanced fashion – as Jan Hollingsworth did in writing on the impact of Dodd-Frank on manufactured home buyers and professionals – undermine the credibility of a journalist?

Senior management with every major industry lender MHProNews spoke in favor of reforms on Dodd-Frank, even if they don’t make the same kinds of loans 21st and VMF do.

Triad’s CEO elaborated on the challenges faced by their firm and other manufactured housing professionals. “Since we specialize in A credits, we have never had an issue with higher cost loans and the rules that surround higher priced loans have zero impact on us.”

However,” Glisson stated, “the rule that prohibits a manufactured home retailer from advising the customer on finance options is one that we would like to see changed. Currently a buyer of a site built home can receive advice from their realtor or builder on financing options, while manufactured home buyers have no similar ability to seek a seller’s help. This would be like going to a car dealer to buy a new SUV and when you ask for help securing a loan they hand you the phone book and say they can’t help you so just pick one out yourself.”

Glisson explained what impact this CFPB regulation has made on their operation. “This has doubled the amount of applications we are now processing to do the same amount of lending. In the past, before the CFPB regulations, a retailer could pre-qualify a buyer by accessing their credit reports and analyzing their income, just like every Realtor ® in America can do. With that information, they could at least determine what lender NOT to send the application to. We have had to add several full time equivalent team members to handle the crush of applications, as we are now bombarded with applicants who have no chance of qualifying with us.”

This is a pattern of “shot-gunning” applications by retailers to all MH lenders, to avoid the appearance of steering, that other lenders have confirmed for MHProNews.

Glisson went on to say that, “Beginning in 2014, when the rules went into effect, our origination cost per loan has skyrocketed. Pre-2014 we would approve about 50% of the applications we received as they were pre-screened. Currently we approve about 30% of the applications we receive, so our efficiency went down the tubes and we are working harder and spending more to make the same amount of loans.”

These are the kinds of real world problems caused by federal regulations that cause a lender such as U.S. Bank to pull out.

inside_mh__am_landy

As Sam Landy, President and CEO of UMH Properties pointed out in a video interview linked here, it has caused them and others in the community business to stop lending to potential manufactured home owners. They now rent homes to those who before would be qualified by their finance arm to make renters into home owners. How does that regulatory caused impact help those thousands seeking ownership and equity instead of rent receipts to advance in life?

Doing the Math

Finance experts tell us that a community operator like UMH, using a related or ‘captive finance’ company, can afford to make loans at a lower interest rate than a traditional lender because they are only loaning on manufactured homes in their community. In the event of a default, their costs and thus their loses are lower. Additionally, a manufactured home community operator can benefit even if their loan program is only marginally profitable, because they are getting additional revenue from a sold home and filled homesite.

There is no similar benefit to the third party loans made by 21st, VMF, Triad Financial, CU Factory Built Lending or Mountainside Financial. The same holds true for regional or local lenders who must profit on the loan itself, or they won’t make the loan in the first place.

Does Buffett win more than Millions of home owners would from the proposed reforms to Dodd-Frank?

While the Seattle Times’ Baker and his tag team writer Wagner make it sound that Warren Buffett and Berkshire-Hathaway related companies are the big winner from financial reform, they clearly overlook the real world impact on an estimated 20% of those home owners who live in a home that is worth under $20,000.

If those homes averaged $15,000 each, 1.76 million MHs represent an aggregated value of $26,400,000,000. That sum dwarfs the benefits to Berkshire-Hathaway, or indeed, to the entire manufactured housing industry.

Since financing is the key to most big ticket sales, a loss of financing causes the same drop in value that was seen in conventional housing in the wake of the 2008 mortgage collapse.  Just as conventional housing lost value absent lending, the same holds true for manufactured homes.

As the now-retired president of the Manufactured Housing Association for Regulatory Reform (MHARR), Danny Ghorbani, has said, the factory built home industry was not the cause of the 2008 housing/mortgage bubble. So why were manufactured home owners, housing businesses and professionals penalized? Why is manufactured housing owners and buisnesses taking such a direct hit from the impact of CFPB regulations?

eric_powell_and_family

 As Eric Powell told Jan Hollingsworth about the impact of Dodd-Frank and the CFPB regulations on their manufactured home purchase, What were they thinking when they did that?”  Or as Sam Landy told MHLivingNews, the consequences to millions of manufactured home owners and thousands of business may well have been untended, but someone has got to fix this. ##

(Image credits 3 and 4, MHLivingNews; Don Glisson Jr photo and composite photo and graphic of Baker and Wagner made by MHProNews).

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

Senator Richard Shelby Offers Bill to Improve Access to Financing Manufactured Homes

May 12th, 2015 Comments off

richard shelby senator  wikipediaU. S. Senate Banking Committee Chairman Richard Shelby (R-Ala.) has included in The Financial Regulatory Improvement Act provisions to improve access to affordable financing for manufactured home buyers. Identical to S. 682 the Preserving Access to Manufactured Housing introduced in the Senate, as well as HR 650, which was passed by the House, Sen. Shelby’s legislation addresses current regulations that make it difficult for lenders to make smaller loans for manufactured homes.

Mirroring the same standard that applies to real estate agents selling site-built homes, the bill clarifies the definition of a mortgage originator, allowing manufactured housing retailers to assist consumers as long as they receive no compensation from the lenders. MHProNews has learned the major consumer protections such as QM Ability to Repay, prohibition against steering, and loan term disclosures remain intact.

Sen. Shelby’s regulatory relief legislation will be taken up by the Senate Banking Committee May 21. ##

(Photo credit: wikipediacommons–Sen. Richard Shelby (R-Ala.)

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

IMPORTANT! Tell Your Senators to Support Manufactured Housing

April 28th, 2015 Comments off

mfg_home__pine_grove_mfg_homes_incIn a message to MHPronews from Nathan Smith, Chairman of the Board of Directors of the Manufactured Housing Institute, he notes the House has passed HR 650 April 14 by a bi-partisan vote of 283-162, and implores those involved in the manufactured housing industry to contact their two senators to support its companion bill, S. 682, in the Senate.

Also titled the Preserving Access to Manufactured Housing Act, the Senate Banking Committee held a hearing April 16 to consider the measure, and now the Senate needs to hear our voices of support for manufactured housing as a “critical resource for working families, and the largest form of unsubsidized affordable housing in the nation.

Don’t hesitate! Click on Email NOW, insert your address, and the message will automatically be sent to your two senators. You may also tweet using the same steps. ##

(Photo credit: Pine Grove Manufactured Homes)

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

NAHB Appeals to Congress to Ease Credit for Homebuyers and Contractors

April 17th, 2015 Comments off

mortgage app  housingwire creditThe National Association of Home Builders (NAHB) urged federal regulators and Congress to ease tight mortgage standards so that credit worthy borrowers could contribute to a stronger recovery of the housing market. NAHB Chairman Tom Woods testified before the Senate Banking Committee that was examining barriers to obtaining mortgage credit. He was urging the Senate to pass the Mortgage Choice Act, legislation approved by the house this week that would ease access to home loans for working class and first-time homebuyers.

He said, “By responsibly modifying the definition of points and fees for a home loan to be considered a qualified mortgage and ensuring that consumers can choose the lender and title provider best suited to their needs, this bill would allow more low- and middle-income families the opportunity to finance a home purchase.

He also asked Congress to pass the Portfolio Lending and Mortgage Access Act. “This legislation is intended to ease the ability to repay requirements for community lenders who may fear originating non-qualified mortgage loans and, therefore, may limit access to credit for home buyers whom they believe to be creditworthy,” said Woods.

Noting that federal agencies, in addition to Congress, could alleviate some of the unduly burdensome regulations surrounding credit access, he says lenders impose tighter restrictions than the VA, FHA and Fannie Mae and Freddie Mac require. As MHProNews has learned, despite recent improvement in the economy, Woods states lenders continue to withhold credit from developers seeking construction credit, saying regulators are pressuring them to reduce their loan portfolios. ##

(Image credit: housingwire)

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

If the GOP Takes the Senate, the CFPB may Take a Bath

October 28th, 2014 Comments off

cfpb_credit_cfpbSince the formation of the Consumer Financial Protection Bureau (CFPB) in 2011, which the financial services industry fought to prevent, Republicans in the House and in the Senate have said it is an intrusion of government into the market. If the Republicans take control of the Senate in the upcoming election, which polls in several swing states say could very well happen, Sen. Richard Shelby (R-Ala.) may head the Senate Banking Committee. While he has taken a hard line against the agency, MHProNews understands the Republican majority in the Senate would be slim, and Sen. Shelby may only attempt to institute reforms in order to gain Democratic help, rather than try to make massive changes. Additionally, he would be up against CFPB engineer Elizabeth Warren, now a Democratic senator from Massachusetts, and also on the Senate Banking Committee, says the washingtonexaminer.

Brandon Barford, of the policy research firm Beacon Policy Advisors who once worked for Senator Shelby, says limiting the agency’s funding would be near impossible without a veto-proof Senate majority.

Meanwhile, Rep. Jeb Hensarling (R-TX), House Financial Services Committee Chairman, who calls the CFPB “the single most unaccountable agency in the history of America,” has led a series of hostile oversight hearings, and continues to seek to curb the agency’s authority. He wants to replace the single director, Richard Cordray, with a five member board, take funding oversight away from the Federal Reserve and put it in the hands of Congress, and limit its overall authority.

Ruth Susswein, a consumer advocate with Consumer Action, says in a July, 2014 poll conducted by Lake Research Partners, three-quarters of the voters favor the Consumer Financial Protection Bureau.

Representing financial companies in their dealings with the CFPB, Alan Kaplinsky, the head of Ballard Spahr’s Consumer Financial Services Group, predicts the Senate will hold a series of oversight hearings, and it will be “good political theater.”

With the November 4th mid-terms right around the corner, the future of how finance will be done in America in the next few years clearly hangs in the balance.  Early voting returns in some states suggest the Republicans are well positioned, but polling in some battle ground -states such as GA or KS – suggest a dead heat. ##

(Image credit: Consumer Financial Protection Bureau)

matthew-silver-daily-business-news-mhpronews-com(Submitted by Matthew J. Silver to Daily Business News-MHProNews)

HUD Head Castro Supports Johnson-Crapo Reform Bill

September 22nd, 2014 Comments off

Julian_Castro mayor of san antone  new HUD head 5 14The new head of the Department of Housing and Urban Development, Julian Castro, in his first major policy speech, said lending standards have become too tight and policymakers need to find ways to expand the housing market. Speaking at a housing summit sponsored by the Bipartisan Policy Center, the former mayor of San Antonio supports the Johnson-Crapo measure to reform housing finance that passed out of the Senate Banking Committee. The bill would eventually eliminate Fannie Mae and Freddie Mac while maintaining a backstop for the private securitization market, but opposition by several key Democrats has stalled it, according to nationalmortgagenews.com. He supports the Federal Housing Administration’s (FHA) housing counseling program called HAWK—Homeowners Armed with Knowledge—that can save FHA borrowers $10,000 over the life of a loan if they adhere to the counseling program. FHA has also developed a Loan Quality Assessment Framework to clarify underwriting guidelines. MHProNews understands loosening of credit is good for the manufactured housing industry as well. ##

(Photo credit: hud.gov)