Top Ten Videos to watch

crime scene
Vote
Studio Portrait of Two Young Women Back to Back, One With a Tattoo
Mamie Till and Emmett Till
GOP Redistricting Plot To Unseat Rep. Corrine Brown Exposed
Protests Break Out In Charlotte After Police Shooting
'Keep the Vote Alive!' March Commemorates Civil Rights Act
White man shooting
Gun Violence Continues To Plague Chicago, Over 1,000 Shootings For Year To Date
HS Football
Gun Violence Continues To Plague Chicago, Over 1,000 Shootings For Year To Date
Police Line
US-POLITICS-OBAMA
2016 Republican National Convention
44th NAACP Image Awards - Show
MD Primary
Premiere Of OWN's 'Queen Sugar' - Arrivals
Democratic National Convention
US-VOTE-REPUBLICANS-TRUMP
Los Angeles Rams v San Francisco 49ers
US-POLICE-RACISM-UNREST
Protesters Demonstrate Against Donald Trump's Visit To Flint Michigan
President Obama Speaks On The Economy In Brady Press Briefing Room
Lil Wayne
Construction Continues On The National Museum of African American History To Open In 2016
Preacher Preaching the Gospel
Hillary Clinton Campaigns In Louisville, Kentucky
Miami Dolphins v Seattle Seahawks
US-VOTE-DEMOCRATS-CONVENTION
US-ATTACKS-9/11-ANNIVERSARY
Leave a comment

Foreclosure_rates_up_by_smallest_amount_in_4_years-thumb-400xauto-7115

WASHINGTON (AP) — Taking aim at deceptive lending, the U.S. Senate on Wednesday voted to ban mortgage brokers and loan officers from getting greater pay for offering higher interest rates on loans, and to require that borrowers prove they can repay their loans.

The Senate, however, rejected a measure that would have required homebuyers to make a minimum downpayment of 5 percent on their loans. The votes were part of the Senate’s deliberations on a broad overhaul of financial regulations designed to avoid a repeat of the crisis that struck Wall Street in 2008.

President Barack Obama weighed in on the Senate debate Wednesday, criticizing a proposed amendment that would exclude auto dealerships that offer car loans from oversight from a consumer financial protection bureau that the broader legislation would create. Auto dealers — influential figures in their communities — have been aggressively lobbying for an exemption from the law, and the amendment, offered by Sen. Sam Brownback R-Kan., could win bipartisan backing.

Click here to view photos:

“This amendment would carve out a special exemption for these lenders that would allow them to inflate rates, insert hidden fees into the fine print of paperwork, and include expensive add-ons that catch purchasers by surprise,” Obama said in a statement. “This amendment guts provisions that empower consumers with clear information that allows them to make the financial decisions that work best for them and simply encourages misleading sales tactics that hurt American consumers.”

RELATED: Obama’s Mortgage Assistance Program Excludes Millions Of Homeowners

The administration has fiercely tried to protect the consumer provisions of the bill. It has answered the political power of the auto dealers with an appeal on behalf of the military, arguing that soldiers and their families have been particularly targeted by deceptive dealers.

The Senate unanimously approved an amendment Wednesday that clarified any regulations or enforcement actions by the proposed consumer protection bureau would not affect merchants and retailers that do not engage in a financial services. Critics, including the U.S. Chamber of Commerce, had argued that the bill could affect small business owners such as orthodontists, who allow patients to pay over time.

Separately, the Senate overwhelmingly voted to let the Federal Reserve retain its supervision of smaller banks. The underlying regulation bill would have given the central bank oversight only over the largest financial institutions.

Regional Fed presidents have lobbied senators to allow them to continue watching over smaller bank holding companies and state-chartered community banks. Limiting the Fed’s supervision only to bank holding companies with assets of more than $50 billion — as proposed by Senate Banking Chairman Christopher Dodd, a Democrat, — would have left most of the Fed’s 12 regional banks without any institutions under their oversight.

The lending-related measures attempted to respond to one of the issues at the heart of the financial crisis — the abundance of bad mortgage-backed securities that nearly toppled Wall Street and knocked some of the nation’s largest financial institutions to their knees.

RELATED: Citi-Group To Help At-Risk Homeowners Stay In Homes

“Credit was extended to people who couldn’t pay their mortgages back, and those were passed throughout the world,” said Sen. Bob Corker, a Republican. “So we had a systemic crisis, not only in this country, but around the world.”

Senators voted 63-36 to amend an underlying financial regulation bill to place restrictions on how mortgage brokers and bank loan officers get compensated. Supporters argued that consumers were steered into higher rate mortgages that they were unable to pay, resulting in foreclosures and toxic mortgage-backed securities that poisoned the markets.

Borrowers would have to provide evidence of their income, either though tax returns, payroll receipts or bank documents. That provision seeks to eliminate so-called stated-income loans where borrowers offered no proof of their ability to pay.

RELATED: High-Income Black & Latino Borrowers Face High Interest Rates

comments – Add Yours