Obama Drops The Veto Hammer On Republican Plans To Gut Wall Street Reform

obama-point

President Obama threw cold water on Republican plans to gut Wall Street reform and consumer protections by threatening to veto both GOP bills if they should reach his desk.

The White House first threatened to veto a Republican bill that would allow manufactured housing lenders to raise the cost of loans to consumers:

The Administration strongly opposes H.R. 650, which would weaken key consumer protections and provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Specifically, the bill would revise the Truth in Lending Act to allow manufactured housing lenders to raise the cost of loans to consumers without triggering existing rules designed to protect consumers from loans they cannot afford to repay. Many borrowers purchasing manufactured homes are among the lowest income and economically vulnerable consumers. H.R. 650 would put these borrowers at significant risk of being subjected to predatory lending and being steered into more expensive loans even when they qualify for lower-cost alternatives. There is no reason to deny these borrowers the consumer protections that they receive today.

Because H.R. 650 would weaken key consumer protections and provisions of the Dodd-Frank Wall Street Reform Act, if the President were presented with H.R. 650, his senior advisors would recommend that he veto the bill.

Immediately after the veto threat on H.R. 650 the White House followed up by threatening to veto H.R.685 that would also weaken consumer protections for people who are buying a home:

The Administration strongly opposes H.R. 685, which would weaken key consumer protections and provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

A fundamental component of Wall Street Reform is its requirement that lenders, before extending mortgage loans, make reasonable, good faith determinations that mortgage borrowers have the ability to repay the loans. The law provides lenders with protection from liability under this requirement if their loans satisfy certain clear criteria and thus are “Qualified Mortgages.” One of the criteria is that the up-front costs (“points and fees”) not exceed three percent of the total loan amount. During the housing bubble, many lenders front-loaded mortgage loans with points and fees and therefore had less incentive to determine a borrower’s ability to repay. Moreover, excessive, front-loaded points and fees contributed to predatory lending behavior, “steering” borrowers into more expensive mortgage loans.

H.R. 685 would revise the Truth in Lending Act to allow certain charges to be excluded from the definition of points and fees even when the lender or its affiliates receives the fees. By exempting certain fees from the three percent cap, H.R. 685 would allow lenders to increase the cost of loans and still be eligible for “Qualified Mortgage” treatment. This revision risks eroding consumer protections and returning the mortgage market to the days of careless lending focused on short-term profits.

Because H.R. 685 would weaken key consumer protections and provisions of the Dodd-Frank Wall Street Reform Act, if the President were presented with H.R. 685, his senior advisors would recommend that he veto the bill.

Republicans in Congress are attacking consumer protections in an effort to turn back the clock to the days when Wall Street crashed the U.S. economy. For those who say government doesn’t matter, and that both parties are the same, I suggest that they examine what Republicans are trying to accomplish. President Obama is the only person standing in the way of a Republican agenda that is designed to only serve corporations and the wealthy.

Both of the Republican bills are backdoor assaults on consumer protections and the regulations that were put in place after the last Republican president was a friend of Wall Street. Politics does matter. President Obama and Congressional Democrats are standing up to stop Republicans from returning the country to the bad old days of too big to fail.

20 Replies to “Obama Drops The Veto Hammer On Republican Plans To Gut Wall Street Reform”

  1. They tried the Quaterback sneak past Elizabeth Warren again! Kinda like getting past the fence with a bad dog to see the Lion got out too!
    Great Job Nr. president!

  2. veto the gop.

    hey y’all, this is the week to bug anyone in the house and senate over TPP. sen sanders is all up in this debacle happening. anyone running for office does not want this to be part of their re election crapfest… hartmann also mentioned this blog today.

    #47traitors

  3. too bad a huge portion of the people Obama stood up for today have been dead set against him, probably will never take the time to “examine what Republicans are trying to accomplish”, and continue to assume “government doesn’t matter, and that both parties are the same”.

  4. We bailed out Wall Street from a crisis of their own doing that destroyed the economy & many peoples lives. Now they thank the American people by having their paid politicians unravel the protections set up to protect us from their doing this again.

  5. I would ban you again but whats the point? You are so lonely you would just find a way around it and come back. My advice to you is go buy some rubbers do not take more than 30 dollars with you because your dumbass may get robbed and go get laid. Remember ask mommy can you go outside first

  6. So republicans are already suing over executive actions. I wonder when they are going to sue to stop Obama from vetoing their agenda as well?

  7. The Republicans “built this” and have no one to blame but themselves. If the only way to stop their obstruction is to use the veto pen, have at it Mr. President!!!!

  8. (Obama as Thor in the Avengers) You want me to put the hammer down?! THUMP!

    Lame duck presidency, my ass!

  9. I been reading a lot about the TPP pros and cons and to tell the truth I just don’t know
    The TPP Education Project, Preface: Questions of “Fast Track”, “Secret Deal” and NAFTA
    http://www.thepeoplesview.net/main/2015/3/17/the-tpp-education-project-preface-fast-track-secret-deal-nafta

    The TPP Education Project, Jobs and Labor: Globalizing the Rights of Working People
    http://www.thepeoplesview.net/main/2015/3/18/the-tpp-education-project-jobs-and-labor

    The TPP Education Project, IP: An Intelligent Look at Intellectual Property in the Trans-Pacific Partnership
    http://www.thepeoplesview.net/main/2015/3/26/the-tpp-education-project-ip-an-intelligent-look-at-intellectual-property

  10. Blessed will be the day when Republicans create legislation that will benefit someone other than rich bastards.

  11. We thought that we had finished with Wall Street with the Dodd Frank Bill. They have come right back and congress, Republicans AND Democrats AND the President. have put us on the hook once again.

    A provision in the $1.1T budget passed last December, apparently written by Citigroup, repeals a key part of the Dodd-Frank Act.

    “The provision enables the big banks once again to use insured deposits and other taxpayer subsidies and guarantees to gamble in the derivatives markets—the very type of business that drove the 2008 financial crisis and the economic devastation that followed”

    http://www.forbes.com/sites/stevedenning/2014/12/12/with-dodd-frank-rollback-the-big-bad-banks-are-back/

    Anyone that thinks we are being protected from the same massive recession that occurred in 2008 needs rethink their position.

    Until Wall Street and the banks are held accountable for their actions, the taxpayer will always be held hostage.

  12. We thought that we had finished with Wall Street with the Dodd Frank Bill. They have come right back and congress, Republicans AND Democrats AND the President. have put us on the hook once again.

    A provision in the $1.1T budget passed last December, apparently written by Citigroup, repeals a key part of the Dodd-Frank Act.

    “The provision enables the big banks once again to use insured deposits and other taxpayer subsidies and guarantees to gamble in the derivatives markets—the very type of business that drove the 2008 financial crisis and the economic devastation that followed”

    http://www.forbes.com/sites/stevedenning/2014/12/12/with-dodd-frank-rollback-the-big-bad-banks-are-back/

    Anyone that thinks we are being protected from the same massive recession that occurred in 2008 needs rethink their position.

    Until Wall Street and the banks are held accountable for their actions, the taxpayer will always be held hostage.

  13. Repug congressional leverage forwarding yet another
    make the rich wealthier agenda. Imagine that? Thanks
    Obama, to use clueless hater speak, for the veto!

  14. HR 650, the deceptively titled “Preserving Access to Manufactured Housing Act of 2015,” is yet another example of industry attempts to destroy valuable consumer protections that resulted from the opportunistic abuses of predatory lenders preying on perhaps the most vulnerable type of consumer; those who own homes on someone else’s land, as occurs in manufactured home communities, aka, mobilehome parks. In some areas, similar consumer protections have been adopted in response to outrageous rent increases charged for the patches of dirt the homes are permanently affixed to, just as regulation of utility rates was triggered by the corrupt practices of ENRON and other predatory utility companies.

    If proponents of HR 650 are truly sincere in wanting to help manufactured home owners, they should push the Federal Housing Finance Agency (FHFA) and other Federal officials to fully implement the intent of the Housing and Economic Recovery Act of 2008 by demanding government sponsore…

Leave a Reply

Your email address will not be published.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.