Legislation to Repeal Dodd-Frank Introduced in the House

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.

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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.

 

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  • Admin has it right about the likelihood of passage in the House and eventual enactment. Even if it is passed in the Senate which is doubtful, the President will veto it and although the House might override the veto, the chances of the Senate overriding a veto are zero, nil, nada, zilch, and none.

    While I respect Representative Frank in his knowledge regarding the financial industries these political diatribes repulse those of us who support his legislative positions. He always seems to go out on a limb and starts cutting it off on the side which is closest to the trunk when it comes to partisanship politics.

    The real concern is and remains Special Assistant to the President and Special Advisor to the Secretary of the Treasury, Elizabeth Warren. Frank Kautz, II, an attorney and HECM counselor, got it exactly right when he presented his concern over her possible bias against reverse mortgages in a comment to an RMD article dated December 8, 2010; her alleged position is not much different from most attorneys I know. Frank does a great job presenting his position without attacking Ms. Warren on any level. It is some of her strong affiliations which give the greatest concern. She has no known official position within the Consumer Financial Protection Bureau (“CFPB”) but does oversee its formation and the appointment of its initial Director on behalf of President Obama and Secretary Geithner. She is for all practical purposes running the department at this time and overseeing the report on reverse mortgages which is expected to be issued in advance of its deadline.

    What could happen is the Republicans in the Senate could deny appointment of any CFPB Director until late January 2013. They could and probably would do that if they believe the country will have a Republican President in office that month, unless there is NO objection to President’s nominee or some kind of compromise is worked out. That could stop even the required report on reverse mortgages from moving forward.

    The latest report from Consumer Union was specifically addressed to the CFPB. One of the other sponsors was the Alameda County, California Council on Aging, part of NCOA of which Dr. Barbara Stucki is an executive. With its close ties to Democrats, hopefully NRMLA will be able to work with Ms. Warren to create an unbiased picture on reverse mortgages in the report due to Congress. My concern is those close ties have not fared well when dealing with the express positions of Senator Kohl, Senator McCaskill, and several members of the House.

    There are some interesting days before us.

  • Good day all,

    My comment is a long one, I hope all of you take the time to read it. First off I want to extend my prayers this morning to all the families of the slain victims in Arizona. I want to also extend those prayers for congresswoman Giffords complete recovery as well as for the other injured victims. These are tragic times in our country, this is a time we all need to stand together.

    Now to the subject at hand. The Critic has made some very good points. I agree with her, the president will most likely veto the repeal regardless if it passes both the house and the senate. However, I must applaud Representative Michele Bachmann for her swift action in submitting a bill to repeal the “Financial Regulatory Reform Bill”.

    I have said this many times, this bill is disastrous for the American people and our great nation. Never has a bill been passed that has given the Federal Government more authority and power over our entire financial system than this bill. The Consumer Financial Protection Bureau (CFPB), a spin off of the reform bill has the authority to target and destroy the reverse mortgage business as we know it. The people that will be appointed to this committee will not have a clue, other than to implement their power and small minded thinking on our financial system that will lead to complete socialism.

    The people of this country need to rally behind Michele Bachmann and write letters to the President, the congress and the senate. This is that serious my colleagues. I have been fighting this bill and studying it since its passage. If the bill gets defeated first time around, and it probably will as the Critic points out, we MUST not give up. We have to bring it back in, we need to educate every one we can about this bill.

    We need NRMLA to get behind a major effort to support Representative Bachmann. This is where NRMLA can not only do the reverse mortgage industry proud but it can also help save our financial system as well as the entire community banking and lending industry. I call on you, Peter Bell to accept my request. I will be more than happy to help you in any way I can and I am sure many others will as well.

    Please, get behind this repeal request of Michele Bachmann’s. All of us in the reverse mortgage industry have the opportunity to make a difference and fight for a cause that will impact every American citizen. Join me in this fight, we need to fight together as a unit.

    Thank you and God speed,

    John Smaldone

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