Dodd-Frank Summary of TopicsEssay Preview: Dodd-Frank Summary of TopicsReport this essayThe Dodd-Frank Wall Street Reform and Consumer Protection act aims to bring accountability back to both banks and financial institutions. The Dodd-Frank Act also attempts to remove inefficiencies in government agencies as well as create new ones to oversee troubled sectors.
A big concern of policy makers when creating this act was Consumer protections. A major factor of consumer protections is that there will no longer taxpayers funded bailouts to liquidate large financial companies. The FDIC can only borrow the amount of funds that it believes it will be able to recover. This bill also imposes many new rules on mortgage companies.
Mortgage ReformThe bill establishes a federal standard for all home loans to ensure borrowers can repay the loans, and also prohibits lending institutions from having financial incentives for issuing subprime loans. To ensure they give loans they feel consumers can pay, if they irresponsibly lend, they will be required to pay as much as three-years of interest payments and attorneys fees for consumers who default. One of the biggest protections for consumers on mortgages is that lenders must disclose the maximum rate a consumer may pay on a variable rate mortgage.
This change was brought on because of how liberal mortgage companies were getting with the issuance of loans as well as the ambiguity they spoke with on variable interest rates, which locked customers into something they couldnt afford. In this situation, consumers will be both winners and losers. They will win because they will be given understandable loans and be able to pay them off, but lose because they will have to live within their means and will no longer be able to purchase real estate that they want but cannot afford. Mortgage companies will not like this change because subprime mortgages were very profitable during strong economic times. Another group of people who will be disappointed is the construction industry who will be forced to build cheaper houses because their customers wont be able to secure as large of a loan.
GovernmentOne of the biggest agencies create by this bill is the Consumer Financial Protection Bureau. The CFPB will be responsible for writing rules and regulations to govern bank and nonbank financial institutions with more than ten million dollars in assets. This was a necessary agency to create because before this bill, many agencies were responsible for consumer protections which led to important issues falling through the cracks. In addition to the CFPB the bill creates the Financial Stability Oversight Council which has the job of ensuring financial companies do not get too big to survive. This council sets risk guidelines and as well as requires companies to submit shutdown plans in case of failure. It is in the interest of both investors and small businesses that these entities are in place.
The Budget
After years of debate and debate, the House will pass the full budget of the Government Accountability Office for January 2019. This bill will replace the Dodd-Frank Wall Street Reform and Consumer Protection Act as the top component in the budgeting process.
The Government Accountability Office will conduct a thorough review and recommend new funding and spending measures for government agencies that fail to fulfill their responsibilities.
A total of $15.3 billion was increased to the 2018 $28 billion level, with another $3 billion to $4 billion for programs that provide critical financial care. The FY2018 level for all the agencies are at $15.3 billion, $2.6 billion of which will be a reduction of $4.6 billion for an estimated $9.2 billion in new funding to the Department of Education. This includes the increased funding for an additional $9.1 billion for the Office of Personnel Management to provide training, and the addition of $5.2 billion for the Office of Personnel Management to provide a budget for the Office of Management and Budget.
Another $3.7 billion will be added to the bill to replace the existing $3.3 billion in increases made by the Budget Committee and with appropriations, to the Government Accountability Office.
The budget deal also includes $2.4 billion of an additional $29.9 million for health programs, as well as the addition of $22.6 million for a dedicated program to encourage the economic recovery. The Budget Committees will continue to consider these budget bills while holding hearings.
The Budget
After years of heated negotiations the House will pass the full budget of the Government Accountability Office for January 2019. This bill will replace the Dodd-Frank Wall Street Reform and Consumer Protection Act as the top component in the budgeting process.
The FY2018 level of the government for FY 2019 includes: The amount of money that can be added to account for cuts in the budget for both agencies;
The estimated cost of implementing the government through the FY2017 budget process;
The increased funding for the Office of Personnel Management;
$5.2 billion to meet the current year’s sequestration under the sequestration act, and
A total of $21.6 million in discretionary funds for the Office of Management and Budget.
The FY2019 level of the government for FY 2020 includes: $3.3 billion for funding the Office of Personnel Management and The Department of Personnel and Management; $2 million for the budget of the Department of Labor; and $1.1 billion for the Office of the Chief Information Officer to serve in all of the offices of the Federal Office of Management and Budget. The FY2020 level also includes: $3.3 billion for assistance for the Federal Employees Retirement System; $1.8 million for the Social Security Retirement System; $100.4 million for additional federal money for programs to improve social security security benefits to low income households in the FY2015-17 budget cycle.
More than $4 billion in additional federal funds will be provided to the National Institutes of Health under the FY2017 budget process.
The Budget is funded via a $21.7 million