The current economic meltdown has been a nightmare for American families, and a recurrence would be a disaster for our nation. The Senate's vote today puts in place key reforms that help create a brighter future, one in which our financial system flourishes: People will get loans they can afford to repay, and principles of fairness and value in financial products will trump easy money and self-enrichment.
The Senate's action means President Obama can now sign the legislation into law. The new regulatory framework will go far to reduce risky practices and restore common-sense in financial services. In particular, consumers now have a champion in the Consumer Financial Protection Bureau, which has the power to ensure that financial products provide value—not landmines—to American families. The new law also will bring more openness and transparency to financial markets.
The tragedy is that so many millions of families have had to lose their homes and financial stability before lawmakers took action. The next step must be to help those ensnared by the predatory products that federal regulators allowed to flourish over the last two decades. And we must turn quickly to putting in place new consumer protection rules under the new law to prevent abusive lending in the future.
For more information: Kathleen Day at (202) 349-1871 or kathleen.day@responsiblelending.org; Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org; or Charlene Crowell at (919) 313-8523 or charlene.crowell@responsiblelending.org.