Even After Weakening the Latest Regulation, Lending Industry Whines For More. Blue Dogs Are On Their Side.
By Susie Madrak Thursday Sep 24, 2009 6:00pmBarney Frank is weakening the administration's proposed regulation of predatory lending because, well, the conservative Blue Dogs won't go along with the original version. The industry, of course, is taking that as encouragement, and they're pushing for an amendment that would neuter state consumer protection laws:
He would also drop language requiring providers to adhere to a “reasonableness” standard in offering products; in other words, financial institutions would have been required to asses whether there products were clearly understandable to consumers. That language was seen as too vague and would leave providers open to legal challenges.
The Administration is willing to go along. In an appearance Sept. 23 before Frank’s committee, Treasury Secretary Timothy Geithner acknowledged some of the criticism of the Administration’s proposals and called Frank’s proposed changes, “a pragmatic helpful way to make sure you have the choice for protection.”
“There are lots of different ways to make sure that you don’t create too much unbridled authority that would be damaging to what’s an important part of our financial system,” Geithner said, according to the Associated Press.
Frank is also seeking to clarify just who would be regulated by the new agency, to address complaints by the US Chamber of Commerce that every small business that provides credit to its customers, or the service providers such as CPAs or advertisers who work for them, would be regulated by the new agency. Administration sources from economics chief Larry Summers on down have dismissed those criticisms as nothing more than “scare tactics” but they have nonetheless been effective. In an effort to eliminate that confusion and take it off the table as an issue, Frank will propose language that clarifies that many such businesses will not be included in the new agency’s mandate. Only bona fide providers of consumer finance offerings will be included.
In proposing the changes, Frank is “bowing to political reality” says Howard Glaser, a former top lobbyist for the Mortgage Bankers Association who now runs his own firm. In a note to clients, he points out that the Administration’s proposal was running into trouble with conservative Blue Dog Democrats.
They appear to have raised many of the concerns that have been voiced by the financial services industry and its allies at the US Chamber of Commerce, who have been lobbying heavily against the plan for the last couple of months. They argue that the proposed agency would cut back on the availability of credit, discourage innovation, and tie up many banks and small businesses in a new web of regulation. The Chamber and the community bankers have been taking the lead in fighting off the Administration’s proposal, since small business folk and local bankers who serve them win far more sympathy than do big banks and mortgage brokers at the moment.
Not that Frank’s moves are likely to slow them down. Even amidst news reports this AM that Frank was pulling back on the proposal, the Chamber announced a press conference for tomorrow morning once again criticizing the agency and how it would hurt small business.
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Don't own or use credit cards. It is easier than you might imagine.
These corporate republican blue dogs do not belong in the democrat party which has been recruited , funded and supported By Emanuel with our democratic political funds..
Consider yourself fortunate , but others are not that lucky... The point of this is why should our elected officials let the criminal actions which are the same in which our laws use to prohibit gangsters from doing...
The problem now is the people we are electing to represent us you might as well say are on these corporate payroll and are passing legislation which passes law to protect them and give them what they demand...
We need to stop Emanuel and others which are recruiting , funding and supporting this type of actions which has and is destroying our citizens live and our country...
Why are we not making plans NOW to select someone to run against them in 2010...
These blue dogs and some of these centrists like Emanuel are either republicans which have been elected on the democratic ticket or have been brought out by these Global Empires for the advancement of their own power and wealth...
Either way we should start now finding a candidate to support that will run against them with the true values of the democrat party..
Emanuel is building his group an empire in to take control of the democrat party to run as he see fix , instead of for the wishes and welfare of the democratic voters and our country...
he is a free marketeer. the 'fair market' plans have never had his support. his populism does not match his record. he's just a witty POS.
he is dating a big time banker at that specific time.
Make statements without a research on the background of a person..
interests when Mr. Frank was pushing for the bailing out of Fannie Mae even though he had been involved in a relationship with one of the big shots over there.
Oh, and where is all the oversight he promised for the whole TARP debacle?
You sound like a republican hit man... We should have 250 more democrats like Barney Franks in our house of representatives..
In 2003, while the ranking Democrat on the Financial Services Committee, Frank opposed a Bush administration proposal for transferring oversight of Fannie Mae and Freddie Mac from Congress and the Department of Housing and Urban Development to a new agency that would be created within the Treasury Department. The proposal reflected the administration's belief that Congress "neither has the tools, nor the stature" for adequate oversight.
Frank has been involved in mortgage foreclosure bailout issues.[61] In 2008 Frank supported passage of the American Housing Rescue & Foreclosure Prevention Act, intended to protect thousands of homeowners from foreclosure.
http://en.wikipedia.org/wiki/Barney_Frank#Fan...
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Barney Frank has opposed the Iraq War from the beginning and has consistently voted against funding it.
http://projects.washingtonpost.com/congress/m...
This is what a strong Democratic Majority looks like in America in 2009? Jesus wept.
The regulations are for protecting the banks. The entire economy just melted down because there weren't enough regulations. The bank executives total scorn for their customers will result in them losing customers for life. They doubled my interest rate and I paid off my credit card and cancelled it. I will never use another credit card again until there is some protection for credit card users. I have told all my children to never own a credit card and I have told all of my nieces, nephews and younger cousins to never own a credit card because the bank can use it to destroy your credit and bankrupt you. I tell all my co-workers my story and tell them to reconsider having a credit card. I figure if everybody the bank screw over will tell their story to their friends and relatives then the banks will lose a good percentage of their customers over the coming years.
don't realize is, if you don't use credit at some point in your lives, you won't have a credit rating that will let you make a major purchase like aa major appliance, a car or a home. You have to use credit to build a credit rating. That's reality.
It's an urban legend that one must have a credit rating. Save some money for a major appliance or a car. As for mortgages, the house is collateral. If you don't pay, you lose the house and all the money you've paid on the mortgage. Don't fall for the bullshit.
but if you don't have a credit rating you don't have to worry about the mortgage because you won't get the loan for the home.
Owner will carry
an owner that has the assets or credit to get into their next home.
Also I thought 25% down would get you the home regardless in many cases. I could be mistaken but I was told a substantial down could get a person in the door even with bad credit.
I think his point about the credit system is that we do need to imagine what could replace it. It is a messed up rating system that is often inaccurate, managed by crooked companies fully engaged in crooked practices as we speak (see free credit report dot com ads)
Christ you can't even get a job with out getting your credit checked.
volunteered to make things disappear from credit reports in order to make mortgages go through. The banks and mortgage companies who actually funded the mortgages never questioned these reports. They did not care, as the mortgages were sold before the closing was over. No new regulation has occurred. It is the same game, with no new rules and hardly any old ones.
Another urban legend. Why do you think we are in the mess we are in now? Have you heard of any regulations being put in place. No? I didn't think so. I know what you want to believe. I want to believe it, too. It's not real. The ugly greedy picture of America--that is real.
the mortgage business. I think I have a pretty good knowledge of the business. I haave also worked in realestate.
.
The only outfit lending for mortgages is the FHA.
Here in Michigan, owners are falling all over themselves to give land contracts.
again, they will start doing it again. If they don't, won't they end up the biggest landlords in history?
The Banksters in many cases now are not foreclosing on delinquent mortgages because they then would owe the taxes on an upside down property, a property that they will take a huge loss on.
By not foreclosing they don't show it on their books as a loss.
They are playing for time, the crap is still going to hit the fan.
Elizabeth Warren, along with Neil Barofsky are two of the few honest people in Washington. They aren't elected, they are probably not very popular with the Banksters I suspect.
She talks about TARP and the Toxic Assets that are STILL on the Banks' books, a year later here
in my house. Neil Barofsky is new to me. Going to read EW.
A number of the behemoth banks are still up to their eyeballs in doo doo. They get tons of cash from we the peons and they hang onto it because they are insolvent. They have been insolvent all along.
Much ado was made about the 'profit' from several Banks paying back TARP money but it was a very small portion from the Banks that didn't need it.
The latest I could find from Barofsky here
I was not comforted. I kept feeling I was missing something about this situation. Now I know what it is. Nothing has happened. It seems they are just paying salaries and bonuses with the bail-out money. Oh, wait. That is what they're doing, isn't it?
It was a heist pure and simple.
The largest one in history.
the detriment of the property owner. They can ride for 4 years, then the taxing authority will sell the property at auction. What are the banks going to do then? The only amount of money the taxing authority is interested in is the tax amount due. The banks can buy them for that amount, and the real estate is clean. The mortgage debt is still on the books, but the house can be resold to cover that debt. But only to another bank, so the deficiency, the original mortgage, will just be passed around. How can it ever actually go away?
We are in the year one of new order, maybe that should be disorder.
I don't know what will happen.
spine. Make that two of them. Big sigh.
Do yourself a favor:
www.daveramsey.com
If you save, you don't need a credit rating, aka a debt rating. Mortgages can be had easily from good banks if you have cash for the down payment and no debt or bad credit. Seriously.
No, you can't get one from Countrywide without a huge existing debt pile, but you don't want a mortgage from thieves like them anyway.
was it? I gave them up in 1998, and I have never regretted it. Don't you feel better?
I had to give up my wife to give them up, but now my financial future is very bright!
... that you never need to fly, or rent a car, or get a hotel room.
be a good thing. Three decades of "financial innovation" has led to the greatest financial disaster since the Great Depression. Such "innovation" has been little more than a license to loot.
"They argue that the proposed agency would cut back on the availability of credit, discourage innovation, and tie up many banks and small businesses in a new web of regulation."
Less credit/debt would be a good thing and more regulation of the financial sector is long overdue.
is brilliant, but he really speaks like tweety bird
But Tweety kicks ass:
http://www.youtube.com/watch?v=rYaWX43bTW0
that's a rude and a unnecessary comment.
LOL. Actually it was a little better than the comment that identified Frank as brilliant.
Un huh Nodrama. You sure as hell don't mind creating it. Get some maturity.
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Thu, 09/24/2009 - 19:57 — nodrama
[Comment Deleted By Administration For Violation Of Terms Of Service]
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No comment.
I am sick of big business always claiming to be the protectors of small business. The Chamber of Commerce is nothing more than a lobby group for big business and corporate profits. If the Chamber of Commerce really cared about protecting small businesses in this country they would freaking support Health Insurance Reform to help take the burden off of them.
And the Blue Dog Democrats – you know, the ones who hate health care reform but love spending on wasteful defense policies AND supporting less regulation on our financial markets — ought to become unemployed in 2010
The blue dogs are the most useless group any political party has ever had. They were started by a scumbag, who later became a republican during the ascsension of consevatism in the 1990's.
They are completely and totally out of step with what most American's would now like to see - the destruction of the conservative policies that brought us to corporate fascism and economic disaster.
These dumb-asses were elected because the American people loathe the GOP and their sick agenda. So what do these assholes do? They vote just like the freaking repukes who they defeated - because people hated the repukes. Man are these fuckers (bluedogs) stupid.
The story does have a bit of humor and irony to it though. Because if these morons do defeat health care and regulation, THEY will be the ones who lose their seats - and I hope they do!
And Walmart would be challenged.
the Democratic Party is in need of some serious housecleaning?
Many of these lawmakers aren't Democrats in anything other than name only.
They need to be targeted and removed. They are not doing the job we expect them to do.
I think so also. I think we need to take out at least 95% of both parties. These people are not honest people. I have a hard time thinking of actual honest people in our government.
There was one years ago I think her name was Fenwick?
She would not take pay for speaking engagements. She said and rightly so that people wanted to hear her speak because of her job or position, that she was paid by the people and should not charge them for talking to them. I think Sanders is a good man.
But yes washington needs a house cleaning.
Always remember, republicanism is a mental illness. Proven fact!
Hey, Democrats! Although I left your silly party over a decade ago, my heart is still essentially with your platform and agenda. That being said, I would ask all of you to think of me as Dr. Degan, your loving and trusted family veterinarian. After a complete and thorough examination of your beloved pets, it grieves me to offer you this final diagnosis:
Your Blue Dogs must be put to sleep.
Let's stop kidding ourselves and face some serious and uncomfortable facts here, okay? Any chance of serious health care reform is about as dead as the nails the GOP has spent the last nine years hammering into their own coffin. And the biggest irony? It was killed by a coalition of "Conservative Democrats" - or DINOs: Democrats In Name Only - which begs the musical question: With donkeys like these, who the hell needs elephants?
http://www.tomdegan.blogspot.com
Tom Degan
Goshen, NY
Can't remember where I read it, but one of the guys from the state with almost no payday loan regulation, the site of all their HQs, (ND?) was about to assume chairmanship of a committee governing such things. Was it here on C&L? He was going to kill a bill that would end usury by payday loan companies.
That industry needs serious new regulation because it's stealing, yes stealing, from people who can least afford it. Frankly, I'd like to see that kind of business outlawed altogether.
Without stronger regs in all consumer loan categories, the commissioned sales droids lie and cheat to get people to sign for loans they cannot afford. We're conditioned to think "they wouldn't loan me money if I couldn't afford it" but they make those loans regardless. Yeah, people should quit borrowing, as I have, but reality says that's not gonna happen.
If corporations get the rights of people, it should play both ways: Make the agent who approved the loan personally responsible for a portion if the loan fails.
I don't know where the point of reasonable regulation is, but deregulation lead to the innovation which lead to the unavailablility of credit, after a record credit bubble burst.
The FED dumped billions into the banks and they don't want to lend it out, even without regulations, as they are carrying loads of bad debts on their books and unelployment has been rising, increasing the risk of not being repaid.
Innovation was basicly a code word for financial fraud.
We don't need more innovation, we need sound banking.
<>
Here is your problem. Some areas of the country are conservative. The only way a democrat is going to get elected is if they are conservative leaning. Reality is what it is.
Your point being?
The whole thing is a joke
"... asses whether there products..."
It doesn't matter what the article says. The author is a moron. Why can't people understand that if you can't even use a dictionary then everything you say is invalid and nobody should listen to you.
Seems funny how these CLOWNS and MORONS can say if you have no credit you are a risk? then if you have credit you are a risk? We still need a paycheck of 700,000 dollars a day to support our way of life but you can't seem to live with in your means?
Funny when you control the purse strings how things work just keep changing the rules until it all about and only about you. I believe it is time to LET THEM FAIL.
These alleged institutions are meandering and draining our treasury of the future in the hopes to break the GOVERNMENT that is bailing them out. Nice plan why are we letting it happen.
It is PROVEN reaganomics did not and does not work.
Last question how come from the time the implementation of regulation was done until the unholy alliance of the republican, corporate reagan era there were NO bank failures no credit failures. Yet on Sept 17th last year the World Markets collapsed and we have been digging ourselves out ever since. This year alone 94 Bank failures with more to come. I guess I am one person who sees to much reality and not enough of the Nazi, Hate Mongering Manipulation from the Wacko Right.
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