U.S. House Committee Endorses Predatory Lending; Economic Recovery, Not So Much.
Center for Responsible Lending
May 13, 2011
By their votes today to weaken the Consumer Financial Protection Bureau (CFPB), a majority of House Financial Services Committee members showed they care little about American’s wallets or our nation’s economic rebound. Instead, they voted to stack the rules in favor of the same lenders and regulators who brought us the subprime mortgage crisis and national financial meltdown.
Lawmakers could have voted to protect consumers from abusive financial products and practices, but most did not. Instead, they sided with industry-driven moves to hamstring CFPB even before it opens its doors in July 2011.
Lawmakers could have voted to promote responsible lending practices, but most did not. Instead, they voted to preserve tricks and traps in predatory loans costing Americans billions of dollars each year.
And lawmakers could have voted to increase consumer confidence in a fair financial marketplace and spur increases in consumer spending, economic activity, and jobs. Most did not. Instead, they opted for weaker economic growth and stronger prospects for future meltdowns and taxpayer bailouts.
We are grateful to Committee members who did side with American families in this important vote. We call on their colleagues in the full House to follow their lead, not the directions of Wall Street lobbyists and big-money financial firms.
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About the Center for Responsible Lending
The Center for Responsible Lending is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation's largest community development financial institutions.