Thursday, October 1, 2020

Financial Reform Bill Will Help Latino Families

The National Council of La Raza (NCLR) has released their analysis of the financial regulatory reform bill recently passed by the US Senate.  In it, they outline what they believe to be the “victories” for Latino families in this piece of legislation.

Many Latino families resort to payday and car title loans to pay their bills on time.  Some of these bills include mortgages and credit cards which consumers were lured into by unscrupulous lenders.

The Restoring American Financial Stability Act of 2010 aims to change that through comprehensive banking reform.

A new agency, the Consumer Financial Protection Bureau (CFPB), would be created in order to protect Americans from abusive financial products and services.  This would help alleviate the disproportionate toll the recession took on Latinos and other minorities as a result of a lack of strong protections.

During this economic crisis foreclosure has impacted an estimated 17% of Latinos and another 11% of Black homeowners, while approximately two million Latinos and Blacks have lost their jobs.  The bill will provide assistance to these families in the form of bridge loans to avoid losing their homes while they search for jobs.

Perhaps one of the most vital features of the bill is one that would help families avoid situations like these in the future.  The bill calls for an expansion of community-based financial planning that includes independent financial advice and guidance for families.  An empowered financial sense will help families build their economic future by making wise borrowing decisions and identifying the correct lenders.

A conference committee of Senate and House of Representative members has been meeting to reconcile the differences between the two versions of the reform bill.  Congress is expected to approve the merged version when it returns from Fourth of July recess next week.

Restoring American Financial Stability Act of 2010

NCLR