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July 21 marked two anniversaries in financial reform—it was the sixth anniversary of the Consumer Financial Protection Bureau and the sixth anniversary of Dodd-Frank. Over the weekend, President Obama met with Senator Elizabeth Warren, the chief architect of the CFPB, to discuss the progress the financial system has made under post-crisis Wall Street reforms. The CFPB has returned 11 point 7 billion dollars to more than 27 million harmed consumers in just five years.
Critics of the CFPB say it is overreaching and unaccountable. Republicans have made repeated efforts to roll back portions of Dodd-Frank and change the structure of the CFPB. The Republican presidential nominee, Donald Trump, said he wants to eliminate Dodd-Frank altogether. President Obama said, quote, Whether you’re a Democrat, a Republican, or an Independent, if you’re a hard-working American who plays by the rules, you should expect Wall Street to play by the rules, too, and that’s what we’re fighting for. Close quote
Record-low yields on U.S. treasuries are keeping mortgage rates down near all-time lows, which in turn is driving increases in house-buying power and keeping real house prices low compared with historic standards, according to First American Financial Corporation’s Real House Price Index for May 2016. According to First American Chief Economist Mark Fleming, the housing market in the U.S. has benefited from global economic turmoil because historically low mortgage rates are increasing affordability.
