Politics

Barack Obama Threatens To Veto Any Dodd-Frank Repeal

| by Ethan Brown
President Barack Obama.President Barack Obama.

President Barack Obama will likely veto any bills passed by Congress that would undo any part of the Dodd-Frank banking and financial reform legislation, according to the White House.

On April 13, the Obama administration said the president’s economic advisers would recommend a veto to any legislation that would weaken “key consumer protections,” The Hill reported.

Two bills are currently on track to pass both houses of Congress, led by Republicans John Boehner of Ohio and Senate Leader Mitch McConnell of Kentucky. One of the proposed bills would look to assist consumers purchasing a home by exempting them from loan borrowing fees. The second legislation would remove a section of Dodd-Frank that “categorized some loans for mobile homes as high-cost,” ABC News reported.

While Republicans and some Democrats support the GOP efforts, saying consumers would have better access to financial assistance, most Democrats believe the proposed law would undo tough restrictions put into place after the 2008 economic collapse.

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The second bill, authored by Republican Rep. Bill Huizenga of Michigan, is a continuation of a previous legislation he created in February.

The older legislation, known as The Mortgage Choice Act of 2015, aims to help low-income and middle-class Americans getting access to mortgages. While the GOP-led House passed the bill, the Senate did not bring it to a vote, largely because Democrats would have filibustered the proposed law. Huizenga assured his colleagues his legislation would not undo Dodd-Frank’s protections.

“This legislation is narrowly tailored to promote access to affordable mortgage credit without overturning the important consumer protections and sound underwriting requirements specified by Dodd-Frank’s 'ability to repay' provision,” the congressman said in February.

In his State of the Union speech earlier this year, Obama vowed to veto any Republican legislation that would curtail the Dodd-Frank reform law, a law that has been the center of controversy since its creation.

Sources: The Hill, ABC News, Wolters Kluwer Law & Business

Photo Credit: Steve Jurvetson, Flickr Creative Commons