Dodd-Frank Has Crippled Our Economic Recovery. This Bill Will Unleash Real Growth Again.

Dailty Signal ^ | 05/18/2017 | Sondra Clark

[ForYourChildren]

Have you noticed that free checking accounts are now nearly nonexistent, and locally owned stores are increasing the $5 minimum charge on debit cards?

These are not the result of some financial conspiracy. They are a direct result of Dodd-Frank regulations.

After the financial crash of 2008, President Barack Obama decided to increase the role of the federal government in the economy and impose massive new regulations on banks. As one might assume, this hasn’t worked out so well.

Included in the over 3,500-page Dodd-Frank bill are rules restricting access to credit for investors and homebuyers, raising lending costs for entrepreneurs, and making it harder for small businesses to get capital to start or grow.

..

In summary, Dodd-Frank has been cited by economists as the primary reason America has had a historically slow economic recovery since 2008.

Reform Is Urgently Needed

Enter the Financial CHOICE Act (or the Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs Act), which was introduced this April by House Financial Services Committee Chairman Jeb Hensarling, R-Texas.

{..snip..}

[Parley Baer]

I think President Trump will sign a lot of these bills. The problem is getting them to his desk for signature.

[D-fendr]

In mortgage lending Dodd-Frank helped big banks at the expense of community banks.

A scam to begin with. Needs to go.

[DoughtyOne]

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...this is a general all-purpose message, and should not be seen as targeting any individual I am responding to...

[Calvin Locke]

Didn’t Frank put in a good word for bailing out Mad Maxine’s husband’s corrupt bank?

[onona]

The problem is getting them to his desk for signature.

The GOPE have it as a mission to send as few bill to the EXO for signature as possible.

MSM already making / prepping snarky comments comparing the amount of bills signed by his predecessor and DJT.

Drain The Swamp !

[raybbr]

Any bill that doesn’t abolish the usury of PMI means the banking industry is still running the show.

[bankwalker]

Are you talking about private mortgage insurance that home purchasers pay when putting less than 20 percent down?

[Hardastarboard]

PMI = legalized theft.

[momincombatboots]

Making insurance companies into banks has been a disaster. Is anyone else having a hard time with it? Suddenly, I had my home insurance cancelled, of course I received the notice six days later. Now I can’t get it back. I am not sure we can afford the insurance through the Mortgage company. The home is 30 years old and currently vacant.
Not sure what to do with it... except let it go. But I love it and we poured everything we had to buy it. I plan to move back there in a few years.

[bankwalker]

Why did they cancel it?

[raybbr]

Yes, PMI is the biggest financial scam going.

[bankwalker]

Why do you say that?

[9YearLurker]

Isn’t PMI only for those who don’t have the traditional 20% down to start with?

If so, isn’t it making such loans possible?

[KarlInOhio]

I'm trying to figure out what the $5 minimum debit card transaction has to do with the law? I saw the limit (which might be old) is 21¢ plus 0.05%. Without this law, would that be higher or lower? The 0.05% would probably go up to be similar to the couple percent transaction fee on credit cards, but would that 21¢ fixed fee drop?

I see similar minimum transaction size on credit cards whose fees are not regulated by this law, so I find it hard to believe this law is the cause of the minimum transaction amount. Although I think the Dodd-Frank law is harmful, I think blaming the minimum transaction limit on it is just a ploy by the author to whip up those buying coffee with a debit card.

[texas booster]

PMI protects the banks from their own borrowers, after an insane series of financial checks. In addition, the newest rules from a couple of years ago mean that PMI is no longer dropped once the lender pays below 80% of the original loan.

If we didn't have PMI, for example, there are lots of folks who are legitimately self-employed that couldn't get home loans without massive downpayments. I am sure that it would severely impact housing market growth.

There is a reason that in many states the main reason to refinance is to get rid of PMI.

In my area of Texas I see PMI costs commonly at ~$1,500 per year but have seen the cost at over $2,500 per year.

[bankwalker]

Due to free market forces, some lenders pay the PMI for the borrower. It pays to shop around.

[9YearLurker]

I was self-employed when I bought my house with the standard 20% down (and so no PMI needed).

And I am not convinced it is prudent for lenders to provide mortgages for less without something like PMI. Certainly there is no reason for the government (that is, taxpayers) to provide such insurance.

And it sounds like refinancing is a route out of PMI once there is sufficient equity anyway.

[texas booster]

some lenders pay the PMI for the borrower

Interesting, I haven't heard of this in Texas.

The only exception I have seen are VA loans and other government backed loans that use taxpayers to protect the banks.

[texas booster]

The real estate market is so localized that it makes it difficult to make any generalizations, but that doesn't stop politicians or news readers. Or me.

Looking at the last 10 years or so, I have noticed the largest increases in a family's expenses coming from:

> Actual healthcare expenses, both the cost of insurance and the out of pocket deductions,
> Taxes, especially real estate taxes (in TX),
> Education expenses, and
> Food expenses.

Concerning RE taxes, that is where Texas has chosen to pull taxes to pay for schools and local government. Texas is not NJ yet but we are getting closer every year.

Concerning food, I have laughed when being told that social security will give no COL increase (again). Nothing but an unreported gov’t dodge by Obamas minions to cap expenses.

Concerning healthcare, where is all that money being collected going?? Makes no sense to me at all.

My gut feeling about education costs is that both public and private universities have scammed the gov’t into making very risky loans to folks that have no real chance of paying it back, but are on the hook for it 100%. That's why the Dems were pushing for student loan forgiveness to buy votes. Create a crisis, blame the other side and propose a specious solution to get credit for it.

I still feel that with the current banking rules that there is much going on behind the scenes to protect the guilty, to pay off both pols and “fat cat” bankers and to hide all of the sins of banking behind the fleecing of the middle class.

...

Rereading this, I now feel that politically I fall somewhere between Bernie and Goldwater.

The joys of populism!