Consumer coalition applauds Obama’s jobs plan, but says what country needs is large-scale mortgage modifications
By Rita R. Robison
Americans for Financial Reform, a coalition of more than 250 national and state organizations working for Wall Street reform, said it applauds President Obama for focusing on measures to create jobs and the problem of unemployment.
However, the coalition says what consumers and the economy need are large-scale mortgage modifications:
The unresolved housing crisis – including the millions of families facing foreclosure and the millions who owe much more than their homes are worth – remain another persistent drag on the economy. We support ways to make it easier for families to refinance, but we continue to believe that much more needs to be done. The country needs large-scale mortgage modifications, including deep principal reductions, to resolve the problem and to help spur consumer demand.
The coalition also believes that fair rules are needed for financial markets so that similar crisises can be averted.
In its statement, the coalition said it’s troubling that Republican leaders in the Senate this week renewed their pledge to refuse to implement the consumer protection law passed last year by refusing to consider a nominee to direct the Consumer Financial Protection Bureau.
“This may work well for Wall Street banks, and financial industry special interests, but it leaves the public at risk, the coalition said. “As families navigate hard times, it is especially important to prevent financial tricks and traps that leave them poorer.”