DS News

56 dollars in mortgage payments over the years to come. e modest 0.5 percent drop in FHA premiums provides the first-time, low- to moderate-income borrowers that the FHA serves with more opportunities to purchase a home more affordably. HUD expects that these lower premiums will save more than 2 million FHA borrowers an average of $900 annually – these are savings that are critical to securing the financial future hardworking families across America. When you ask consumers or potential homebuyers about the biggest obstacle to purchasing a home, the near unanimous response is saving up for a down payment. So I'm pleased that the Obama Administration has taken these critical actions, which will provide many otherwise qualified homebuyers with the opportunity to overcome this difficult challenge. Similarly, when the Federal Housing Finance Agency lowered the down payment requirements for Fannie Mae and Freddie Mac, it ensured that the American Dream of homeownership was not something to only be attained by the wealthiest among us. By lowering down payment requirements to three percent the FHFA has assured that homeownership can be attained by all eligible Americans, including those who are qualified borrowers but are not fortunate to come from wealthy families. At the same time, FHFA also put in place requirements for full documentation, strong credit scores, housing counseling, and private mortgage insurance, ensuring that undo risks are not transferred to FHFA. In both decisions, the administration should also be commended for appropriately balancing safeguards to protect the taxpayer with expanding credit for eligible borrowers. In a perfect world, what does responsible housing policy look like? What further steps do you think the administration can take to help Americans achieve the dream of homeownership? Responsible housing policy ensures that all Americans have the access, tools and opportunity they need to purchase a home or affordably rent one. is is achieved by preserving time-tested approaches that provide certainty to American homebuyers, and ensuring there remains access to affordable rental housing targeted to low- income families. I believe the actions the administration has taken at FHA and FHFA are outstanding first steps towards ensuring that more Americans can achieve the American Dream of homeownership. But while the housing market and the overall economy is improving, millions continue to teeter on the edge of America's middle- class. Systemic inequities distort progress and opportunity for tens of millions of Americans – most especially low and middle-income Americans and communities of color. e data show that as some home values have increased, African-American communities have failed to bounce back. In 2013, the number of white families with underwater mortgages was 5.45 percent – compared to 14.2 percent for African-Americans. One-in-nine white Americans have less than $1,000 in assets – but for Latino Americans, that ratio is one in four. For African-Americans, it's one-in-three. Because homeownership remains the single best way for families in America to build wealth, we must address the ongoing barriers to homeownership in order to address this widening wealth gap. We must also fully fund Department of Housing and Urban Development programs that work to end homelessness and preserve access to affordable rental housing targeted to low-income families. It means focusing on sensible housing finance reform, not the PATH Act, which would put homeownership even further out of reach for many families. And, it means bolstering protections for consumers and keeping predatory lenders and risky products that brought the economy to its knees out of the market. You are a vocal proponent of the changes that Dodd- Frank made to the financial industry. In what ways do you think the act helped further Wall Street Reform and protect consumers? e Dodd-Frank Wall Street Reform Act was enacted in response to the worst financial crisis since the Great Depression, stemming from years of lax enforcement by regulators and zero accountability for the nation's largest financial institutions. In sum, our nation suffered a loss of more than $13 trillion in economic growth and $16 trillion in household wealth. e crisis claimed nearly 9 million jobs and displaced more than 11 million Americans from their homes. In the aftermath, Dodd-Frank was passed, providing unprecedented accountability and transparency and established a stronger foundation for our post-crisis economy. In less than five years, the accomplishments have been significant. I'm most proud that the Consumer Financial Protection Bureau (CFPB) has been such an unprecedented success; returning $5.3 billion dollars to more than 15 million consumers and service members who have been subjected to unfair and deceptive practices – all while promulgating important rules to guard against the risky and irresponsible behavior that hurt so many during the crisis. Moreover, the Volcker Rule is forcing banks to limit the practice of trading to make money for themselves, and refocusing their efforts on making investments in the real economy. Shareholders of U.S. corporations now have a "say-on-pay," and can better hold executives accountable by voting down excessive compensation or golden parachutes. And thanks to stronger authority given to the Securities and Exchange Commission – one of Wall Street's top cops – more than $9.3 billion in civil penalties has been recovered from bad actors since 2011. In less than five years, the accomplishments have been significant. I'm most proud that the Consumer Financial Protection Bureau (CFPB) has been such an unprecedented success; returning $5.3 billion dollars to more than 15 million consumers and service members who have been subjected to unfair and deceptive practices.

• Cover