FOR BREAKING NEWS VISIT www.qns.com THE COURIER SUN • FEBRUARY 16, 2017 11 The Impact: Don’t let Trump dismantle Dodd-Frank BY STATE SENATOR JAMES SANDERS JR. The howl of the wolves is growing closer as the financial shield known as Dodd-Frank is set to be lowered by President Donald Trump, and that means Southeast Queens may be in a world of pain very soon. Dodd-Frank regulated the financial industry by enforcing transparency and accountability, thereby limiting risk. It was the 24,000-page punch that attempted to level the free for all banking culture which victimized millions with subprime mortgages and predatory lending among other things. Just in case you don’t remember how bad times were during the initial years following the housing bubble burst, let me remind you. Between 2008 and 2010, Jamaica lost 1,031 homes to foreclosure, the highest number in the city, according to a report by New York State Comptroller Tom DiNapoli, and we could be losing even more, if President Trump gets his way. On Feb. 3, President Trump signed an Executive Order announcing that he would be rolling back the Dodd-Frank Wall Street Reform and Consumer Protection Act, in order to create economic growth and energetic markets, something he said the current law doesn’t do. How did Trump come to the conclusion that sweeping reforms were necessary? It reportedly came from conversations he had with his friends in the business world who said they were having a tough time getting loans from banks. In order to understand why dismantling Dodd-Frank is so dangerous, we must examine what it is, what it accomplished and why it is so important. Dodd-Frank regulated banks deemed “too big to fail,” by creating the Financial Stability Oversight Council (FSOC), which monitors and responds to risks that may jeopardize the financial stability of the country. In order to protect consumers, Dodd- Frank also created the Consumer Financial Protection Bureau (CFPB), which aims to protect consumers from unfair, dangerous, or abusive business behavior by banks. The CFPB prevents any “risky-lending” from a bank as well as stops transactions that may damage consumers. While it is possible that easing regulatory burdens could lead to more mortgage lending in a historically tight credit market, as some critics charge, it would also open the door to another 2008-scale mortgage crisis. Dodd-Frank’s Title XIV created robust standards for mortgage-lending, including placing a burden on loan originators to verify that borrowers would be able to make payments, ending cash incentives for issuing mortgages, and restricting toxic products like the “balloon mortgage,” a loan whose rate would rise precipitously after a period of time. Such common-sense protections are indispensable for the people of Queens’ 5th Congressional district, where, as elsewhere in the boroughs, predatory lenders explicitly targeted African-American and Latino homebuyers with junk mortgage products. While we continue policies at the state and local level to relieve homeowners in financial distress, it is essential that strong controls remain in place to prevent the cycle of predatory lending from starting over before our neighborhoods have even recovered from the first shock. Great rates like ours are always in season. 1.10% 7-Month CD APY1 $5,000 minimum deposit 1.25% 13-Month CD APY1 $5,000 minimum deposit To qualify you must have or open any Flushing Bank Complete Checking account.2 Get the complete access and control you desire with a competitive interest rate and banking on-the-go with our Flushing Bank Mobile3 app. For more information and to find out about our other great offers, visit your local Flushing Bank branch, call 800.581.2889 or visit www.FlushingBank.com. Small enough to know you. Large enough to help you. 1. New money only. APY effective January 19, 2017. Annual percentage yield assumes principal and interest remain on deposit for a full year at current rate. Minimum deposit balance of $5,000 is required. Funds cannot be transferred from an existing Flushing Bank account. Premature withdrawals may be subject to bank and IRS penalties. Rates and offer are subject to change without notice. 2. A Flushing Bank checking account with a $5,000 minimum balance is required to receive the advertised rate. Certain fees, minimum balance requirements and restrictions may apply. For new IRA and rollover accounts, the minimum deposit balance is $5,000. A checking account is not required for IRA accounts. Speak with a Flushing Bank representative for more details. 3. Flushing Bank Mobile Banking is available to all Flushing Bank online banking users. Mobile carrier fees may apply. Flushing Bank is a registered trademark
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