It does not take long for the lobyists to get to work rolling back legislation
The ink on the legislation is still drying and, already, the mortgage mill industry is trying to gut the little things that might help to hold them accountable for their bit part in the complete economic collapse of this nation:
Dodd-Frank requires that lenders retain five percent of every loan on their books, so that they are not completely separated from default risk. McClatchy reports that the banks are trying to quietly nix that part of the law:
Financial lobbyists also are working to soften requirements that Wall Street firms put more “skin in the game” by retaining more mortgage bonds on their books to guard against shoddy lending…They’re trying to expand the definition of “plain vanilla” mortgages that would be exempted from the risk-retention requirements. [...] The [American Securitization Forum] and its members want to exempt interest-only mortgages, which caused many unsophisticated borrowers to lose their homes. “Certain types of loans aren’t standard, but are appropriate for high creditworthy borrowers,” Deutsch said in an interview, pointing to wealthy borrowers who seek to maximize their mortgage-interest deductions at tax time.
During the debate over Dodd-Frank, the banks pushed Sen. Bob Corker (R-TN) to propose an amendment (which was ultimately defeated) striking the risk-retention provision from the bill. It’s no surprise that during the law’s rule-making phase, they are trying to weaken it as much as possible.
Nevermind the fact that their argument boils down to "What about the rich people and their tax deductions?" Just in case you missed that last part that Think Progress had not emphasized:
Deutsch said in an interview, pointing to wealthy borrowers who seek to maximize their mortgage-interest deductions at tax time.
Does not matter what the issue, nor their political affiliation for the most part... That is always the battle cry and once the lobbyists dump enough money on them or get enough of their corrupted politicians in place you can bet these tiniest of common sense changes will be gutted.
[Update] From MinistryOfTuth:
The following are excerpts from an article at HuffPo written by Joseph A. Palermo, who is an Associate Professor of American History at California State University. I strongly recommend that you read the entire article, which details the failings of our media to educate Americans as to the cause of the sorry state of our economy, which is doing great on Wall St for the plutonomy, and terrible everywhere else.