Wall Street Reform Passes the House


Major consumer friendly components of the bill include:

Consumer Agency:

  • A strong consumer agency was created to protect consumers and enforce regulations on mortgages, credit cards and other financial products.
  • The Director of the agency will be appointed by the President and confirmed by the Senate.

Help for Homeowners:

  • Assistance to unemployed borrowers facing foreclosure.
  • Money provided for the neighborhood stabilization fund which helps with assistance to borrowers for foreclosed or abandoned properties.
  • Funds provided for housing counseling

Anti Predatory Provisions:

  • A new minimum underwriting standard would be enforced that will make lenders verify that borrowers can repay the loan.
  • Bans payments to mortgage originators who steer borrowers into high-priced loans.
  • Protection against prepayment penalties and abusive loan fees.

Data Enhancements:

  • Data enhancements on HMDA (Home Mortgage Disclosure Data) which include loan terms and conditions & age of borrower.
  • Data on the gender and race of the small business borrower so that we know whether woman and minority-owned small business are receiving loans and can start or expand their businesses.
  • A default and foreclosure database that would be an early warning system enabling stakeholders to take action if the data shows a spike in foreclosures.
  • A database of individual loan records in the Home Affordable Modification Program (HAMP) program. This will increase the accountability of the industry for modifying distressed loans.

About the National Community Reinvestment Coalition (NCRC):

The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America’s working families. NCRC provides foreclosure prevention counseling to homeowners through its Housing Counseling Network.


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