OP/ED: Protecting Consumers and Holding Banks Accountable

By Phil McLaughlin

Recently, President Obama and the attorneys general of 49 states, including New Hampshire's Michael Delaney, announced a landmark agreement with the nation's five largest mortgage providers that will give much needed relief to home owners and the nation's housing industry. This action is the latest in a long list of accomplishments by the Obama administration that protects middle class families and moves America forward.

Thanks to the agreement, Bank of America, Citigroup, JP Morgan Chase, Wells Fargo and GMAC/Ally Financial will pay $25 billion to address mortgage loan servicing and foreclosure abuses. New Hampshire and its residents will receive about $43.6 million. Almost half of the money, $19 million, will go towards helping some Granite State homeowners stay in their homes by reducing their principal. The rest of the settlement will help other homeowners who are current on their mortgage payments but are underwater, and it will help repay families and individuals whose homes were improperly foreclosed upon in the last three years. Overall, the settlement will provide relief to nearly two million current and former American homeowners harmed by the bursting of the housing bubble. It is also part of a broad agreement that will establish new protections for homeowners, and will help stabilize the housing market. This agreement is good for New Hampshire homeowners, it's good for our housing market, and it's good for the future of America's real estate market.

Since taking office in 2008, the President has demonstrated a steadfast commitment to standing up for homeowners, consumers, and middle class Americans. Prior to the President's bold actions, too many responsible American families were left vulnerable to a financial system that was out of control and a regulatory system without proper authority.  Wall Street Reform, signed in July 2010, will hold our financial sector accountable, increase transparency in financial dealings, and end taxpayer bailouts once and for all.

One of the Obama administration's biggest victories for consumers was the appointment of Richard Cordray as Director of the Consumer Financial Protection Bureau (CFPB). The CFPB is a central part of President Obama's historic reformation of Wall Street and will help protect consumers from confusing and deceptive financial practices.

According to studies, one in five Americans over the age of 65 has been victim to a financial scam. This consumer bureau will make financial products and services work for Americans - whether they are applying for a mortgage, choosing among credit cards, or using any number of financial products. The CFPB is working to make credit card agreement more understandable - and only two pages long. They're working to improve the way schools communicate financial aid offers; and they're trying to simplify mortgage forms: goals that all Americans can agree on.

Even now, Republicans are attempting to move backwards and erase this common sense policy. While Mitt Romney and other candidates for President have called for its repeal here in the Granite State, our own Congressman Frank Guinta (R-NH) told Director Cordray at a hearing, "I wouldn't object to you[r agency] being at zero [employees]." This signals the clear choice ahead in November.

The President's work is not done yet, but his leadership has helped protect and empower consumers and helped rebuild our housing and financial sector, while holding the banks accountable. President Obama and his administration should be commended for laying out a blueprint for an economy built to last: an economy where hard work pays off and responsibility is rewarded; where everyone, from Main Street to Wall Street does their fair share, plays by the same rules, and builds a better America, together. We must continue to support these efforts.

Phil McLaughlin is the former Attorney General of New Hampshire. He was born and raised in Nashua and now lives in Laconia.