Preservation of the Consumer Financial Protection Bureau (CFPB) Under the Dodd Frank Wall Street Reform Act as a Means of Financial Security for the Hispanic Community
REPRESENTATIVE DAN PABON, CHAIR (CO) BANKING, HOUSING & CREDIT TASK FORCE
WHEREAS, the National Hispanic Caucus of State Legislators (NHCSL) is committed to fostering personal financial literacy as essential to prepare individuals to make informed financial choices as successful heads of households, investors, entrepreneurs, and business leaders;
WHEREAS, predatory lending has been shown to affect mostly minorities, the majority being the Latino community in the United States;
WHEREAS, the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010, and the Consumer Financial Protection Bureau (CFPB), were established to improve the loan practices that contributed to the 2008 financial crisis, which was a period of rising foreclosures due to subprime loans and predatory lending practices;
WHEREAS, financial policies adopted by the government to prevent predatory lending practices should be a priority as regulatory oversight to protect consumers from certain banking, credit, and lending practices;
WHEREAS, according to the Federal Deposit Insurance Corporation (FDIC), while 25.6% of all U.S. households are either unbanked or under-banked, 43% of Latino households are either unbanked or under-banked ;
WHEREAS, the CFPB’s first substantive rule, on international money transfers or remittances, has benefited immigrants in the U.S. by providing important new federal consumer protections to consumers including disclosure requirements, and error resolution and cancellation rights;
WHEREAS, a study of predatory lending practices in African American and Hispanic neighborhoods revealed that subprime loans accounted for 34 percent of the loans issued in neighborhoods where minorities comprised 50 percent or more of the residents ;
THEREFORE, BE IT RESOLVED, that NHCSL encourages state legislators to support the preservation of the Dodd Frank Act, as amended, and the CFPB.
BE IT FURTHER RESOLVED, that NHCSL encourages legislators to educate their constituents about the important consumer protection tools provided through the Dodd Frank Act and the CFPB, and to defend both from any attempt to dismantle or weaken them.
BE IT FURTHER RESOLVED, that NHCSL and the Hispanic state legislators should defend legislation and support agencies that strengthen the financial protection, security and stability of the Hispanic community throughout the United States.
BE IT FINALLY RESOLVED, that a copy of this resolution be transmitted to the President of the United States, the Vice President of the United States, members of the United States House of Representatives and the United States Senate, and other federal and state government officials as appropriate.