The White House said Obama urged regulators to tailor Dodd-Frank rules to financial institutions by taking into account the institutions’ size and complexity, Reuters reported.
White House Press Secretary Josh Earnest said Obama also asked regulators “to consider additional ways to prevent excessive risk-taking across the financial system, including as they continue to work on compensation rules and capital standards.”
Obama “has been pleased with the progress that the regulators have made in implementing the law,” Earnest said. The press secretary predicted that financial reform “is actually going to be one of the most prominent aspects of President Obama’s legacy.”
But Dodd-Frank, passed in 2010, has been unpopular in the mortgage industry, as it has brought about regulations many say are overly burdensome – including the “ability to repay” rule and various fee caps. Industry leaders say many of the new regulations place undue burden on originators and put mortgages out of reach for prospective borrowers who would have qualified under the old rules.
Republican lawmakers also despise the act.
“Dodd-Frank is every bit as far-reaching in its harmful consequences for struggling Americans as Obamacare,” said House Financial Services Committee Chairman Jeb Hensarling. “Thanks to Dodd-Frank, it is harder for low and moderate income Americans to buy a home and there are fewer community banks serving the needs of families and small businesses. … Services that bank customers once took for granted like free checking are being eliminated due to the high costs of Dodd-Frank’s regulatory burden. Another White House meeting between President Obama and an army of Washington regulators won’t do anything to help stressed families.”
President Barack Obama met with top U.S. regulators today to discuss implementation of the Dodd-Frank Act.