‘Warren Effect’ Stymieing Financial Regulatory Relief

patrick mchenry r nc  credit nationalmortgagenewsMHProNews has learned from nationalmortgagenews that Rep. Patrick McHenry (R-NC) says the House passed a measure last week that would regulate how points and fees are calculated under the Consumer Financial Protection Bureau’s (CFPB) “qualified mortgage” rule, but Sen. Elizabeth Warren (D-MA) adamantly opposes a similar measure in the Senate.

He says financial reforms are being stalled in Washington by the “Elizabeth Warren phenomenon.” Rep. Maxine Waters favored the bill two years ago but he says she has yielded to pressure from other Democratic lawmakers to now oppose it, which indicates how Warren’s influence has risen. Warren said the measure is about preserving a cash cow for the mortgage industry and not about access to credit.

As for housing finance reform, he says Congress will only deal with that if the GSEs need additional funding, and that discussion should continue towards a post-GSE world. He says repealing the Dodd-Frank Act will not happen, but he thinks the possibility exists for small but significant steps in how the law is enforced, adding that bipartisan support is feasible for easing the regulatory burden on community banks. ##

(Photo credit: nationalmortgagenews--Rep Patrick McHenry)

matthew-silver-daily-business-news-mhpronews-com  Article submitted by Matthew J. Silver to Daily Business News-MHProNews.

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