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Financial Services Subcommittee Holds Field Hearings Next Week in Texas and Nevada

Washington, Mar 9 -

The Subcommittee on Financial Institutions and Consumer Credit will hold field hearings in Texas and Nevada next week.

In Texas, the Subcommittee will hear from financial institutions about the impact new financial regulations are having on their ability to extend credit and stimulate job growth.  The Dodd-Frank Act, passed by Congress in 2010, requires regulators to issue 400 new rules.  Many financial institutions across the country have expressed concerns that the cumulative weight of these new rules – layered upon existing rules – will substantially increase compliance costs and thereby force them to curtail the lending and investment activities that promote economic growth in their communities.

During the field hearing in Texas, the Subcommittee will also explore the effects of excessively stringent federal bank examinations on the economic recovery.

Congressman Francisco “Quico” Canseco, who represents the 23^rd District of Texas and serves on the Subcommittee, said the field hearing is an opportunity for members of the Subcommittee to hear directly from those impacted by Washington red tape.

“Our economy is being strangled by too much government red tape.  That’s the message I hear constantly from small business owners and financial institutions in Texas,” said Congressman Canseco.  “With the Financial Institutions Subcommittee coming to San Antonio, this is a message that local business leaders will be able to deliver directly to these members of Congress.”

The Subcommittee has held similar field hearings to examine the local impact of regulations and bank examinations over the last year in Wisconsin, Illinois and Georgia.

In Nevada, the Subcommittee will examine potential private sector solutions to mitigate the wave of foreclosures that has hit the state.  According to RealtyTrac, an online marketplace of foreclosure properties, Nevada has had the nation’s highest state foreclosure rate for five consecutive years.

The Obama Administration has devised a number of foreclosure mitigation programs, all of which have failed to stem the tide of foreclosures but have cost taxpayers billions of dollars.

“Clearly, the various mortgage modification programs put forward by the President are not working,” said Subcommittee Chairman Shelley Moore Capito.  “Our hearing in Nevada will help the Subcommittee learn more about some of the steps being taken by the private sector and at the state level to help struggling homeowners.”

The Nevada Legislature in 2009 instituted a foreclosure mediation program that brings eligible homeowners and lenders together to discuss alternatives to foreclosure.  Between September 14, 2009 and the end of 2011, the program completed over 15,000 mediations, with 82 percent of participants either remaining in their homes or agreeing to proceed with an alternative to foreclosure.

Details about the two field hearings are below. 

NOTE TO MEDIA:  Reporters wishing to cover either of the field hearings need to RSVP with the Financial Services Committee at fsc.gop.press@mail.house.gov  or by calling 202-226-0471

The list of witnesses scheduled to testify at both field hearings as well as their testimony will be available from the Committee’s website.  Visit republicans-financialservices.house.gov and click under the “Hearings/Legislation” tab.

Schedule and Location of Field Hearings:

Texas Field Hearing: 
“An Examination of the Challenges Facing Community Financial Institutions in Texas”
Wednesday, March 14 at 9:30 a.m.
City Council Chambers of the Municipal Plaza Building
114 W. Commerce Street in San Antonio