It’s no secret that our Miami foreclosure lawyers have not taken it easy on President Barack Obama’s administration or its seemingly cozy relationship with Wall Street, as evidenced by its lack of sanctions on those institutions and individuals who perpetuated our housing crisis.
That said, Republican Presidential Nominee Mitt Romney’s financial plans appear to be even more dangerous for homeowners – particularly those who are underwater and/or at risk of foreclosure.
He and his party have been contending that deregulation is the way to go. The problem is that lack of regulation is largely what got us into this mess to begin with. With Wall Street at the helm, with little oversight or laws governing their excesses, they were effectively allowed to steer us onto the rocks – and then emerge from the wreckage with nary a scratch.
Again, Obama’s administration has not been perfect in protecting the American people and in seeking justice on their behalf. That said, he did pass the Dodd-Frank Wall Street Reform and Consumer Protection Act. This was signed into law by Obama in 2010. This regulation was the most extensive we’ve seen since the Depression in the 1930s and the New Deal platform of President Franklin D. Roosevelt. Of course, the measure was not perfect, but it’s likely we would have been far worse off had it not been passed.
Here has been the goal of the Consumer Financial Protection Bureau, created by the act:
- To establish a buffer against the wave of abuses and frauds that were inflicted upon consumers and struggling homeowners, whether by con artists or top bankers;
- To promote financial literacy;
- To stop predatory lenders;
- To protect seniors from financial abuse;
- To prevent families from being losing their homes to foreclosure.
We can argue whether these measures have been as successful as the administration had hoped – but it seems hard to believe that one could argue against the ultimate goals.
Well, Romney has. He coins it the “relentless growth of the regulatory state.”
The truth of the matter is, Wall Street profited excessively from that lack of regulation – while unsuspecting Americans were blindsided. They lost jobs, filed for bankruptcy and lost their homes to foreclosure.
And yet, Romney wants us to return these reigns to these “free market forces.” By veiling this plan in a cloak of patriotism, Romney thinks that we don’t know what that means: Again handing over the power – and the profits – to banks, which will once again be free to run buck wild with our future.
The other part of the Right’s narrative is that this was all Obama’s fault to begin with. His “job-killing policies,” they say, are largely to blame.
But here’s the truth:
- Economic catastrophe hit just as George W. Bush was rounding out the end of his presidency – before Obama took office.
- Most of the major mortgage lenders (Lehman Brothers, Fannie Mae, Freddie Mac, Bear Sterns, Washington Mutual, Merril Lynch, Citigroup, AIG and Wachovia) either were acquired under duress, taken over by the government or failed.
This is certainly not to say that Democrats hold no responsibility. In fact, leadership over the last two decades – under both parties – has been negligent with regard to our economy, and the banking industry in particular.
But deregulation is not the answer. Allow the banks to once again hold free reign, and see how quickly we rewind back to the woes of 2008.
If you’re battling foreclosure in Miami or the surrounding areas contact Jacobs Legal for a confidential appointment to discuss your rights. Call (305) 358-7991.
Mitt Romney and Consumer Protection Regulation, By Adam Levin, Credit.com & ABC News