Rep. Michele Bachmann (R-Minn.) introduced H.R. 87 earlier this week to repeal the Dodd-Frank Act, claiming it fails to address address the taxpayer-funded liabilities of Fannie Mae and Freddie Mac and grossly expanded the federal government beyond its jurisdictional boundaries.
“It gave Washington bureaucrats the power to interpret and enforce the legislation with little oversight,” she said. “Dodd-Frank also failed to address the taxpayer-funded liabilities of Fannie Mae and Freddie Mac. Real financial regulatory reform must deal with these lenders who were a leading cause of our economic recession.”
While a full repeal of Dodd-Frank is unlikely, it’s expected to attract increased congressional scrutiny of the regulatory process is expected.
Rep. Barney Frank (D-Mass.), Ranking Member of the House Financial Services Committee, said Bachman’s efforts to repeal the law reveals the hypocrisy of right-wing claims that they are concerned with ending uncertainty in the economy.
“Now that we have put in place a set of rules that allow financial markets to function but which also curb their excesses, Representative Bachmann and her allies want to reintroduce uncertainty by going back to exactly the situation that led to the financial crisis in the first place,” he said in a statement. “They yearn to return to the thrilling days of yesteryear, so the loan arrangers can ride again – untrammeled by any rules restraining irresponsibility, excess, deception, and most of all, infinite leverage.”
Republicans are concerned that the soon to be established consumer protection agency will reach too far and hurt businesses and delay any sort of recovery. As part of Dodd-Frank, the agency is required to conduct a study on reverse mortgages to identify deceptive practices and figure out whether suitability standards are necessary. The agency also has the authority to issue regulations, orders, or guidance that apply to reverse mortgages prior to the completion of the study.
An unnamed source within the agency told the WSJ it has started to look into reverse mortgages.