Legislative Issues
State Update
180,000. That's how many bills are projected to be introduced in state legislatures in 2009. Many of these bills will impact our company and require changes in our operations. Action in the state legislatures typically happens much faster than in the US Congress, so we have to act quickly to avert major disruptions to our business operations. State legislatures have already convened and are actively working to enact the various state legislative agendas.
Some of the major issues that are likely to be enacted in the states include:
- Foreclosure relief (includes notification, mediation, and/or moratoriums);
- Anti-predatory lending and home loan protections;
- Loan officer licensing (to implement the new federal SAFE Act);
- Interest rate restrictions (targeted at pay day lenders, but impacting all consumer loans); and
- Tax increases for financial services companies (to balance state budgets).
Please take a moment to read the GR weekly report to learn about state legislation that impacts our businesses.
Washington DC Update
In the face of unprecedented difficulties facing the nation, the American people went to polls and overwhelmingly voted for change last November. In 2009, that change comes in the form of President Barack Obama, who is inspiring unprecedented enthusiasm, and a more Democrat-dominated Congress.
Given the turmoil caused by the subprime mortgage crisis, Wall Street scandals like the Bernie Madoff Ponzi scheme, and the tough votes Congress has taken to provide a $700 billion financial rescue package last year, the populist backlash facing the financial industry can’t be underestimated. As policymakers in Washington continue to work to stabilize the economy,
the financial services industry is viewed as the villain that should be punished.
President Barack Obama has said the government has been asleep at the switch, the economy needs adult supervision and that he envisions new rules of the road, and Congress and the American people appear to agree according to polls. Given that many of the industry players have received government support and are viewed as part of the problem, the industry lacks the credibility needed to influence many of the decisions that the new Washington powerbrokers will have to make.
While the change agenda may mean finally addressing health care reform, the war in Iraq and the use of torture, for the financial industry, there’s also much at stake. Some of the major items include:
- Bankruptcy Reform which could include a mortgage “cram down';
- Credit card restrictions (despite the Fed’s TILA and UDAP regulations),
- Broad restructuring of the Regulatory framework; and
- Responsible Lending
Congress has already begun work on changes in these areas.
For further information regarding any of these issues, please contact the government relations department at (202) 466-3561.
