PEARCE VOTES TO PASS THE FINANCIAL CHOICE ACT, PROTECT RURAL COMMUNITIES, LOCAL BANKS

Jun 8, 2017 Issues: Financial Services

Washington, DC (June 8, 2017) Congressman Steve Pearce today released the following statement after the House of Representatives passed H.R. 10, the Financial CHOICE Act:

“Some of the hardest hit areas of Dodd-Frank’s overly burdensome regulatory structure are the poor, rural areas like many of our communities in New Mexico. Dodd-Frank - with the help of the Consumer Financial Protection Bureau - made it almost impossible for banks to lend to anyone who was just trying to buy their first home, pay for medical bills, or do some emergency repairs. Rather than fix the real root cause of the financial crisis, Dodd-Frank put some of the heaviest burdens on the backs of community banks and hardworking taxpayers. I’m pleased to see the House pass the Financial CHOICE Act today to put an end to this crippling regulatory regime. It is my goal to see that even the most economically fragile in New Mexico have access to opportunities and resources to help them earn their way to success.”

Rep. Pearce spoke on the House Floor today in support of the Financial CHOICE Act. Watch here or click on the image below.

Transcript

“Thank you Mr. Speaker.

Thank you gentlemen from Texas.

Credit is one of the most powerful devices of our financial system. It was designed over time by modern societies. In some countries, credit is simply not available to those who need it the most - people at the bottom of the income ladder.

In the United States, we’ve got a well-developed system where is credit is available no matter how bad your credit rating might be. That is, it was available until the Dodd-Frank regulation created the CFPB. In the second district of New Mexico, 50% of the homes are mobile homes - manufactured housing. The Dodd-Frank [Act] immediately began to show that they had no clue about how rural societies worked, and put into place regulations that choked off the access - of most of our homeowners - to manufactured housing. That wasn’t enough for the CFPB, they began to then set forward qualified mortgages which then choked off traditional mortgages to many people in the second district of New Mexico.

Many people in New Mexico will buy their first mobile home and they’ll live in that, then over a good life, they’ll buy eight or ten more. Then they sell those one at a time. Usually the people who can’t get credit any other way. CFPB simply shut that down. So now seniors living in their senior years with less income, but people who need the loans the most having one more source of credit dried up to them. The rules that affect the rural mortgages small businesses were so punitive that the economy in New Mexico has never yet come back. It’s not just that ‘The Choice Act’ is the right choice in the rural areas, in our areas, it’s the only choice.

I would support H.R. 10 and ask my colleagues to vote ‘yes’ on the bill. Yield back the balance of my time.”

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