The Senate has introduced a Financial Reform Bill, introduced by Banking Committee Chairman, Christopher Dodd (D-Connecticut).
If the bill is passed it will create a Consumer Financial Protection Bureau to watchdog unfair, abusive and predatory financial services and products. It will be housed within the Federal Reserve. Banks and credit unions with assets over $10 billion will be monitored by this new agency, as will mortgage brokers and servicers, debt collectors and consumer reporting agencies.
The bill also includes a council that oversees systemic financial instruments and practices in an effort to avoid the kinds of exotic products that led to instability in the mortgage market over the past two years.
Predictably, the Mortgage Bankers Association and other financial organizations oppose this measure, and the bill probably has a tough road ahead to see approval.
Arlington, VA 22207