FSC Majority | Week in Review
Posted by Staff on June 12, 2015
Committee Questions HUD Secretary on Ineffectiveness of Agency After 50 Years

The Department of Housing and Urban Development (HUD) was created 50 years ago to serve as a main weapon in the “War on Poverty” and the agency has received more than $1.6 trillion in annual appropriations over its lifetime.  On Thursday, members of the Financial Services Committee questioned HUD Secretary Julian Castro on his agency’s failure to achieve measurable results.

“By nearly every official measure, poverty and its consequences are as bad as they were 50 years ago.  The poverty rate today is essentially unchanged from when HUD was founded,” said Chairman Jeb Hensarling (R-TX).  "If we truly care about the least of these among us, we can no longer measure success by the number of dollars appropriated to HUD. That should be obvious. Instead, success must be measured in the number of our fellow citizens who rise from lives of poverty and dependency to lives of hope, self-sufficiency, and pride. That’s true success."

Throughout the hearing, members expressed concerns that HUD has created a bureaucratic, complex tangle of programs that foster dependency rather than promote economic freedom and provide a roadmap out of poverty.

"Our aspirations need to be much higher. Our expectations are far too low. The expectation should be that success is measured not just by how many people we're moving into dependency on the department but how many people we are moving out of dependency," said Rep. Andy Barr (R-KY).

Rep. Mia Love (R-UT) told Secretary Castro, “Every program that we have aimed at poverty should be aimed at making poverty temporary, not tolerable.”

Subcommittee Reviews More Proposals to Promote Financial Independence and Consumer Choice

The Financial Institutions and Consumer Credit Subcommittee continued its review of legislative proposals aimed at helping Americans achieve financial independence and preserving consumer choice.

Subcommittee Chairman Randy Neugebauer (R-TX) said the hearing was another “opportunity for members to continue the discussion of regulatory relief for community financial institutions and the protection of consumer financial choice. Many members here today have put in a tremendous amount of work to build bipartisan coalitions for their legislation."

The hearing covered 12 bills designed to reduce regulatory burdens and streamline regulatory compliance, ensuring consumers have greater access to the financial services they want and need.

Witness Hester Peirce from the Mercatus Center at George Mason University testified how financial regulation needs to be revisited and updated to allow for well-functioning markets. "A well-functioning market enables people who need financing to obtain it efficiently and at a competitive price,” she said.  “Market forces reward financial companies that serve consumers well and discipline firms that fail to provide products and services in a form and at a price that consumers want."


Rep. Mia Love | VIDEO: Affordable Housing Coming To a Neighborhood Near You?

The Fox Business Network featured Rep. Love’s questioning of HUD Secretary Castro from Thursday’s hearing before the House Financial Services Committee.

Weekend Must Reads

The Hill | Ex-Im acting inspector general: Deal could cost taxpayers $150 million

The Export-Import Bank’s acting inspector general testified to Congress on Thursday that the bank could lose $150 million off a deal it financed with an Australian company that went bankrupt in April.

American Banker | Basel III Pulls the Rug Out from Community Banks

Similarities between Volcker and Basel are striking: Both rules weren't intended for community banks, but have had a disproportionate impact on hometown institutions.

Investor's Business Daily | Regulations Could Top Taxes As Enemy Of Small Business

For a large business, complying with regulations is often just a minor cost of doing business. For a small business, regulatory compliance can be an enterprise-killer.

    On the Horizon 

June 16, 2015 10:00 a.m.
Oversight & Investigations Subcommittee Hearing
"A Global Perspective on Cyber Threats"

June 17, 2015 10:00 a.m.
Full Committee Hearing "The Annual Report of the Financial Stability Oversight Council"

June 17, 2015 2:00 p.m.
Monetary Policy and Trade Subcommittee Hearing
“The Impact of the International Monetary Fund: Economic Stability or Moral Hazard?”

June 16, 2015 2:00 p.m.
Capital Markets and Government Sponsored Enterprises Subcommittee Hearing

"Legislative Proposals to Modernize Business Development Companies and Expand Investment Opportunities"

  In the News

Washington Free Beacon | HUD Has Spent $1.6 Trillion Since Its Creation

National Mortgage Professional Magazine | Rep. Royce Calls Out Castro on GSE Reform 

Wall Street Journal | Dodd-Frank Turns Five

American Banker | Lawmakers Spar Over TRID 'Grace Period'

Wall Street Journal | Yellen: Fed Was Advised Against Fully Complying With Subpoena on Leak Probe

Bloomberg | Bill to Change CFPB Governance Structure Draws Support, Criticism at House Hearing

Wall Street Journal | Kill the Export-Import Bank 

CNBC | Chart: What’s the real unemployment rate?

American Banker | Mortgage Lenders Continue Push for TRID 'Grace Period'

Wall Street Journal | SF Fed Sees Involuntary Part-Time Workers Remaining Elevated

New York Times | Mergers Might Not Signal Optimism

The Maine Wire | Poliquin: The Export-Import Bank Must Be Held Accountable

CNBC | How the Fed screwed up the bond market

    Post a Comment
    Fill out the fields below to submit a comment