Source: Queens Gazette: I On Politics
By John Toscano
Congress Member Carolyn B. Maloney (D-NY), Ranking Member of the Subcommittee on Capital Markets, Securities, and Investment on the House Committee on Financial Services, released the following statement after taking to the House floor on May 22 to urge a “no” vote on S.2155 (“the Economic Growth, Regulatory Relief and Consumer Protection Act”), a bill that would roll back Dodd-Frank enacted consumer and investor protections.
“Eight million people lost their jobs in the financial crisis, 6 million people lost their homes, and more than $15 trillion dollars in wealth was destroyed. Yet, the authors of this bill seem to have forgotten that.
“Ahead of the financial crisis—the worst recession in our nation’s history— predatory lenders saddled unsuspecting borrowers with toxic mortgages that they didn’t understand and couldn’t afford. Too often, these predatory lenders targeted communities of color—and when these toxic mortgages blew up, it devastated these communities.
“In response, we passed the Dodd-Frank Act—and I had the privilege of serving on the Conference Committee. Dodd-Frank imposed tough new rules on mortgage lenders, and beefed up our efforts to crack down on lending discrimination. This bill would roll back some of these important protections.
“The bill would undermine fair lending laws by exempting the majority of lenders from the new reporting requirements on lending discrimination. The bill would also weaken the protections for mobile home buyers—many of whom are low-income families—by allowing retailers of mobile homes to accept kickbacks in exchange for steering borrowers into predatory loans that they can’t afford—an egregious practice that Dodd-Frank outlawed.
“And the list goes on.
“This bill will have a disproportionate impact on communities of color and lowincome Americans. And while it contains some provisions that every House Democrat has supported, the roll backs to Dodd- Frank cannot be justified and I hope my colleagues will see the dangers that passing it would mean.”
The House of Representatives proceeded to pass S.2155 on Tuesday. It had already cleared the Senate in March and was sent back to the House for approval. The bill will now move on to the president, who said he plans to approve it.