Tag Archives: The Cato Institute

On the heels of Standard & Poor's controversial downgrades for U.S. debt ratings, Congress passed the deficit reduction axe to a bipartisan, six-member "super-committee" for each chamber, with both parties finally naming lawmakers to the commission Thursday. Capitol watchers say important housing laws and provisions may await the congressional guillotine, with the mortgage tax rate deduction, mortgage debt, and other housing-related giveaways in line. The appointments follow a recent deduction-slashing proposal.

A recent ruling by U.S. Court of Appeals in Washington, D.C., faulted the Securities and Exchange Commission for failing to perform a sufficiently thorough economic impact analysis before it moved forward with a new rule, according to Bloomberg News. The decision could roll over onto provisions established by the Dodd-Frank Act, delaying those provisions and preventing new rules from going into effect. Analysts say the court ruling may delay more Dodd-Frank rules.

As splintering debt-ceiling negotiations unnerved analysts and ratings agencies, Treasury yields and mortgage rates remained relatively stable over the weekend, reflecting a widespread consensus among investors and market watchers that partisan divisions would soon give way to a grand bargain between policymakers. CNN reported Sunday that House Speaker John Boehner (R-Ohio) refused to agree to a set of conditions at the White House, ending dramatic four-month-long negotiations.

Following months of anticipation among critics and admirers alike, the Consumer Financial Protection Bureau formally opened its doors Thursday, taking over rule-writing and enforcement abilities for 18 consumer financial laws, preparing a host of new regulators, and assuming an array of powers provided by the Dodd-Frank Act. The launch notwithstanding, a tied-up confirmation process, scale-up difficulties, and stiff political opposition from the past year hold the CFPB back, making some wonder how the bureau will function.

Following his nomination Monday, lawmakers and trade associations continue to greet Consumer Financial Protection Bureau director-nominee Richard Cordray stiffly, with spokespeople accepting his new role lukewarmly.

On Monday lawmakers introduced a bill that would extend the current conforming loan limits for another two years a deal that could continue federal insurance for homeowners with high conforming jumbo loans. Rep. John Campbell (R-California) and Rep. Gary Ackerman (D-New York) co-sponsored the bill, titled the Conforming Loan Limits Extension Act, which would fix the limit for jumbo loans backed by GSEs Fannie Mae and Freddie Mac and the Federal Housing Administration at $729,750.

President Barack Obama announced Sunday that he would withdraw Treasury Department advisor Elizabeth Warren for the top post at the Consumer Financial Protection Bureau and replace her with Richard Cordray.

House Republican lawmakers advanced a round of attacks against Treasury Department adviser and Consumer Financial Protection Bureau architect Elizabeth Warren Thursday, even as Democrats fired back.

With less than two weeks to go before the Consumer Financial Protection Bureau launches, Treasury Department adviser and nominee Elizabeth Warren plans to attend the House Oversight Committee for the last time on Thursday, giving her Republican opponents one final opportunity to lob critiques at her brainchild before it assumes consumer financial protection authority. Analysts across the spectrum seem to agree that Warren will face yet another challenge from Republicans, who fear numerous transfers of authority from seven agencies will tip the scale between regulation and economic recovery.

In testimony before the House financial services committee and two subcommittees, Consumer Financial Protection Bureau associate director and potential nominee Raj Date made it clear that the agency plans to pounce on new rules for mortgage-servicers in July. Date described a transfer of authority to the bureau from seven agencies set to occur in July. According to Bloomberg News, the congressional committee asked Date to testify as it looks over gaps and lapses in the current body of mortgage servicing regulation.