Wall Street Reform Passes House, Senate Up Next

The US House of Representatives passed the Wall Street reform bill by a vote of 237 to 192 on Wednesday.

“It has been a long fight against the defenders of the status quo on Wall Street, but today’s vote is a victory for every American who has been affected by the recklessness and irresponsibility that led to the loss of millions of jobs and trillions in wealth,” said President Barack Obama in a statement.

The bill includes over 2000 pages and touches just about every part of the financial industry, including reverse mortgages.  Specifically, it creates a Consumer Financial Protection Bureau which has the independent authority to write and enforce rules about consumer lending in mortgages, credit cards and other financial products.

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Housed in the Federal Reserve, the bureau would be required to conduct a reverse mortgage study to determine any deceptive or abusive practices within one year.  It would also determine whether suitability standards are necessary, as well as safeguards to protect consumers from being sold reverse mortgages to fund inappropriate annuities, investments, and other financial products.

The bureau would also have the authority to issue regulations, orders, or guidance that apply to reverse mortgages prior to the completion of the study.

The bill now heads to the Senate where it’s not expected to see any action until July 12 at the very earliest.  The death of Democratic Senator Robert Byrd and cold feet among Republican allies has complicated efforts to round up the votes needed in the Senate according to Reuters.

House passes landmark financial reform bill

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  • Ah yes, the champions of the small people saving us all from the cruel capitalists. For all the money they pee away or lose by thwarting profits, they could just cut taxpayer checks to victims paid for by the increased tax revenues brought in by exploding profits that would be allowed if they just got the h*** out of our lives with all these stupid regulations! We're all regulated and taxed from the moment we wake up to the moment we go to bed, and even while we sleep. Enough already! this wasn't how we became the greatest nation on the planet!

  • Ah yes, the champions of the small people saving us all from the cruel capitalists. For all the money they pee away or lose by thwarting profits, they could just cut taxpayer checks to victims paid for by the increased tax revenues brought in by exploding profits that would be allowed if they just got the h*** out of our lives with all these stupid regulations! We’re all regulated and taxed from the moment we wake up to the moment we go to bed, and even while we sleep. Enough already! this wasn’t how we became the greatest nation on the planet!

  • All I can say my friends, is that if this bill is passed by the senate, every American citizen will witness the largest shift of power to the federal government in my life time and yours.

    The consumer protection bureau, which stems from this bill will be like a round table of bureaucrats deciding this country's financial future, along with every American citizen.

    This so called bureau will have power over lending of all colors, bank regulations, implementing new rules and I am sure they will have the power to even dive into our dark deep secrets.

    If we, the people do not rise up and do what ever we can to stop the passage of this bill, we deserve what we get! The week of July 12th the bill is supposed to go to the senate for final passage. This is not much time for the people to have an impact on the vote. I hope everyone reading my comment will start contacting senators and congressman on both sides of the fence but mainly the Democrats. We need to get NRMLA involved as well. This bill could have a major impact on the reverse mortgage industry. This board will have the power to place restrictions, rules and regulations on our industry that could cripple it.

    I know I may sound radical, however, if you think about it long and hard and try looking through the bill, you will have no choice but to agree with me. I wish all of you a very safe and Happy 4th of July weekend.

    John A. Smaldone

  • All I can say my friends, is that if this bill is passed by the senate, every American citizen will witness the largest shift of power to the federal government in my life time and yours.rnrnThe consumer protection bureau, which stems from this bill will be like a round table of bureaucrats deciding this country’s financial future, along with every American citizen.rnrnThis so called bureau will have power over lending of all colors, bank regulations, implementing new rules and I am sure they will have the power to even dive into our dark deep secrets.rnrnIf we, the people do not rise up and do what ever we can to stop the passage of this bill, we deserve what we get! The week of July 12th the bill is supposed to go to the senate for final passage. This is not much time for the people to have an impact on the vote. I hope everyone reading my comment will start contacting senators and congressman on both sides of the fence but mainly the Democrats. We need to get NRMLA involved as well. This bill could have a major impact on the reverse mortgage industry. This board will have the power to place restrictions, rules and regulations on our industry that could cripple it.rnrnI know I may sound radical, however, if you think about it long and hard and try looking through the bill, you will have no choice but to agree with me. I wish all of you a very safe and Happy 4th of July weekend.rnrnJohn A. Smaldone

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