Waters Vows to Continue Fight Against Predatory Student Loan Servicers After Announcement of Navient $1.85 Billion, Multistate Settlement
Chairwoman Waters released a statement in response to the multistate settlement reached with Navient, one of the largest student loan servicers in the country, related to allegations of predatory lending and unfair student loan servicing practices that harmed borrowers nationwide.
“Last week, thousands of student loan borrowers across the country learned they will finally receive some measure of relief following the news from 39 state attorneys general that Navient will pay for preying on more than 400,000 student loan borrowers.
“Servicers who prey on innocent borrowers and shrug these settlements off as simply the cost of doing business are in for a rude awakening. I will continue to urge federal and state law enforcement to prosecute predatory student loan servicers to the fullest extent of the law, and I will continue my work in Congress to advance more relief for student borrowers as well as bold reforms to crack down on servicers who think they can continue to game the system and cheat innocent borrowers. This is just the beginning.”
Read Chairwoman Waters’ full statement HERE.
House Passes Two Financial Services Bills
This week, the U.S. House of Representatives passed two bipartisan House Financial Services Committee bills.
- The Ghost Army Congressional Gold Medal Act (S. 1404), a bill by Senator Edward Markey (D-MA). This bill provides for the award of a Congressional Gold Medal to the 23rd Headquarters Special Troops and the 3133rd Signal Services Company, known collectively as the Ghost Army, in recognition of their unique and highly distinguished service during World War II.
The bill passed by a voice vote.
- Willie O'Ree Congressional Gold Medal Act (S. 452), a bill by Senator Debbie Stabenow (D-MI). This bill provides for the award of a Congressional Gold Medal to Willie O'Ree, the first Black professional ice hockey player in the National Hockey League, in recognition of his contributions and commitment to hockey, inclusion, and recreational opportunity.
The bill passed by a vote of 426-0.
Tweets of the Week
|Congressman Al Green (D-TX)
Congressman Al Green (D-TX) is the Chair of the Subcommittee on Oversight and Investigations. Representative Green also serves on the Subcommittee on Consumer Protection and Financial Institutions and the Subcommittee on Housing, Community Development and Insurance.
The Financial Services Committee convened one hearing this week:
The Committee convened a Subcommittee on Oversight and Investigations hearing this week entitled, “Ensuring Equitable Delivery of Disaster Relief Benefits to Vulnerable Communities and Peoples: An Example of GAO’s Findings of the CDBG Program,” examining reforms to ensure that states and cities receive disaster relief funds more quickly and vulnerable communities are not left behind.
Waters: We Must Continue to Explore a CBDC and Be Laser-Focused on Financial Inclusion
Chairwoman Waters (D-CA) released a statement on the Board of Governors of the Federal Reserve System’s (Federal Reserve) discussion paper regarding a potential U.S. central bank digital currency (CBDC).
“As a growing number of Americans and businesses engage with or invest in digital assets such as stablecoins and other cryptocurrencies, my Committee is reviewing how they are increasingly affecting many aspects of our lives and our financial system,” said Chairwoman Waters. “On central bank digital currencies, yesterday’s report from the Federal Reserve is the first step in outlining the benefits and challenges with the United States’ potential issuance of its own CBDC. Unlike private digital assets, a CBDC issued by the Federal Reserve would be backed by the full faith and credit of the U.S. government, like the dollar bills in our wallets, and hold the promise of deepening financial inclusion for underserved communities as more economic activity moves online..”
Read Chairwoman Waters’ full statement HERE.
Chairwoman Waters and Senator Warner Urge the Fed to Provide Guidance to Maximize Impact of Investments to Support Diverse and Mission-Driven CDFIs
Chairwoman Waters (D-CA) and Senator Mark Warner (D-VA) sent a letter to Federal Reserve Chair Jerome Powell to urge the Federal Reserve to provide guidance as soon as possible to Subchapter S and Mutual bank Emergency Capital Investment Program (ECIP) recipients on concerns they raised. Chairwoman Waters led the effort in Congress to provide $12 billion in funding to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), which includes $9 billion in critical capital through the ECIP to bolster the lending capacity of CDFIs and MDIs in underserved and minority communities.
“We recognize the range of considerations the Federal Reserve must take into account when considering guidance and appreciate the Federal Reserve shares our goal of ensuring the ECIP program is a success for these institutions and the communities they serve,” wrote the lawmakers. “However, we have heard concerns from certain Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) that there is a lack of clarity on these issues that might unintentionally force these institutions to limit the ECIP capital they accept. In a manner consistent with promoting the safety and soundness of these institutions, we urge the Federal Reserve to give their request for clarity due consideration.”
Read Chairwoman Waters’ and Senator Warner’s full statement and the full text of the letter HERE.