Continuing the Financial Services Committee's ongoing efforts to thoroughly review government policies and regulations, the Insurance, Housing and Community Opportunity Subcommittee will meet for a hearing to evaluate recent changes to mortgage origination laws. The Subcommittee hearing will particularly focus on the impact the new laws and regulations have on consumers and credit availability in the mortgage finance markets.
Financial Services Committee Chairman Spencer Bachus said, "While the financial crisis led to numerous Federal and state laws that changed the mortgage origination process, no overall review or cost-benefit analysis has been conducted. Our primary concern right now is ensuring that these regulations facilitate an environment where private capital can reenter the mortgage finance markets without cutting off funding for worthy borrowers. We need to restart lending in order to help create jobs and get the housing market going again."
Insurance, Housing and Community Opportunity Chairman Judy Biggert said, "The intersection of the credit and housing markets remains at the center of our current economic downturn. Our hearing will focus on regulatory barriers that may needlessly limit the availability of credit, raise costs for consumers, and add uncertainly to an already fragile recovery. With the addition of a massive new financial regulator under the Dodd-Frank bill, the CFPB, the potential for market-distorting and costly rules remains a top concern, and our aim is to ensure that federal action protects consumers, promotes competition, and allows small businesses to grow and create jobs."