FINANCIAL COMMITTEE MEMBER PROPOSES SOLUTIONS TO SPUR LENDING
WASHINGTON, D.C. -- Yesterday, Congressman Frank Guinta, member of the House Subcommittee on Financial Institutions and Consumer Credit, heard concerns from community banking and credit union leaders in New Hampshire that federal regulations are severely affecting their ability to serve Granite State home and business owners.
“The government’s reaction to the financial crisis was forcing one-size-fits-all regulations on local lenders, serving small towns’ unique needs,” said Rep. Guinta (NH-1). “The top-down approach from the Consumer Financial Protection Bureau -- a one-man fiefdom operating outside the control of Congress, the judiciary or even the executive branch -- has resulted in extreme industry consolidation and fewer options for qualified borrowers.“
“The anti-competitive climate is one reason our economy continues to stall,” he explained, adding that the House has passed bills to spur consumer lending and economic growth: bipartisan legislation to bring more transparency and oversight to the CFPB and also maintain protections for consumers and taxpayers.
Manchester’s former two-term mayor met first with community bank leaders, explaining to him that the Dodd-Frank Wall Street Reform and Consumer Protection Act harms Main Street bankers, struggling with compliance costs that larger banks can afford. “Studies show more risk and the new regulatory scheme may be preventing community banks from making residential mortgages -- impeding many Americans’ dreams of home ownership.”
New Hampshire is the birthplace of credit unions. St. Mary’s Credit Union in Manchester is the oldest in the country and facing pressure from Washington to abandon its model, executives there told Rep. Guinta. “The government, favoring big players in the lending market, is telling credit unions to raise millions of dollars or shut down,” said the Congressman.
“But neither they nor community banks caused the mortgage meltdown. I’m working hard on my committee with members of both parties to solve serious financial problems this Administration insists are behind us.”