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NASCUS attended a news conference January 24 to understand priorities of the House Financial Services Committee for 2008 and to learn more about the Committee’s position on the recent economic stimulus package presented by the Bush Administration.
House Financial Services Committee 2008 Priorities
Chairman Barney Frank (D, Mass.) presented an agenda that focuses on current economic concerns including housing, community development, financial institutions and consumer credit.
NASCUS will be closely watching Committee developments regarding housing and consumer issues, specifically any changes to Community Reinvestment Act (CRA) regulations.
The Chairman remarked that CRA and Home Mortgage Disclosure Act (HMDA) would be reviewed together in 2008. He did not reference credit unions specifically in his comments. He said that since CRA was passed in 1977 more entities are involved in lending practices than just banks. He referenced that it has been about 140 years since slavery was abolished and about 70 years since racial segregation and yet there is still racial disparity in our lending practices.
Housing will continue to be a main agenda item; the Chairman stressed home preservation in his remarks. He said that mortgage foreclosures contributed to problems in the economy and that affordable rental housing was a big part of the issue. He said that the Committee needs to look at integrating the U.S. Department of Housing and Urban Development (HUD) programs and tax credits so they are not conflicting. Chairman Frank and Senator Christopher Dodd (D-Conn.) are considering establishing a federally-backed corporation to buy distressed mortgages; keeping people in their homes is the goal, he said.
He also stressed the importance of credit card reform. Chairman Frank said the Committee would not be setting rates but looking at abusive practices, such as universal default. During a question and answer period, he was asked if the Committee would address data security. He said that discussions were planned; his goal is not just to protect consumers but diminish the activity. NASCUS wants to ensure that data security legislation does not preempt state laws or state authority for enforcement of data security regulations in individual states.
Committee Chairman Thoughts on Economic Stimulus Package
Chairman Frank also referenced the stimulus package that Congress is working on with the administration, which he stressed is separate from the Committee’s 2008 agenda. The goal of the stimulus package is to help alleviate concerns about a weakening economy. He is working closely with leaders of this package including Speaker Nancy Pelosi (D-Calif.) but said he could not talk about specific provisions in the package.
He revealed that House and Senate bills (H.R. 1852, S. 2338) affecting Federal Housing Administration tools and the limits on Government Sponsored Enterprises (GSEs) are being discussed. He said the GSE conforming loan limit would be increased, but for no more than a 12-month period; it would be a cap in the stimulus package.
NASCUS will continue to provide updates on the Committee’s 2008 agenda and other related developments.
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