Financial Legislative Reform Signed into Law


Today, President Obama signed into law the most sweeping reforms of our financial system since the Great Depression and the strongest consumer protections in history.

Here are a few highlights:

  • There’s now a single agency responsible for looking out for consumers: the Bureau for Consumer Financial Protections. Instead of seven agencies dealing with these issues part-time, one agency will be in charge of establishing clear rules of the road for banks, mortgage companies, payday lenders and credit card lenders.
  • Mortgage brokers won’t make a higher commission by selling people mortgages that they can’t afford. This was a major factor in the recent housing crisis. Now brokers and banks have to take into consideration a borrower’s ability to repay before giving a home loan.
  • You’ll be able to get a free credit score if you’re denied a loan, an apartment, or a job because of your credit, so you won’t be turned down without knowing why. Right now, you get one free credit report a year, but you can’t see your credit score for free, even if a lender or employer rejects your application because you have bad credit.

No more bailing out banks with our tax dollars, no more “too big to fail.” If a company’s in trouble because of risky gambles, it will have to liquidate — and do so before it can take down the rest of the financial system.

More details about what’s in this legislation can be found here.

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