In the News
Poughkeepsie Journal: Hall event explains financial oversight
July 27, 2010
For eight years, Doug DeMasi Sr. has been embroiled in the fight of his life — to keep the bank from owning his house in Beekman.
Help could be coming in the form of the newly created Consumer Financial Protection Bureau. A law signed by President Barack Obama on Wednesday gives the bureau the power to shield Americans from unfair and abusive financial practices — while specifics on those enforcement policies are in development.
Accused of late payments by his mortgage company, Countrywide Home Loans, DeMasi said he has paid on time and has certified mail receipts to prove it.
"They have been crucifying us," the 57-year-old patent researcher said Monday at a news conference highlighting the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
The massive 2,300-page legislation establishes the consumer protection agency to police products such as home mortgages, car loans and credit cards; overhauls financial sector regulations; and gives the Treasury Department new authority over nonbank financial firms, such as insurance companies.
Rep. John Hall, D-Dover Plains, organized the event at the City of Poughkeepsie NeighborWorks Homeownership Center and spoke about the benefits of the new law for local families.
Hall said the watchdog agency would have the power to threaten "or else" to predatory financial firms that take advantage of consumers when they buy houses, secure college loans, invest their pensions or apply for a credit card.
The act will make sure consumers get the clear, accurate information they need to shop for financial products by shining a light on hidden fees and deceptive business practices, the congressman said.
If not at fault, DeMasi could potentially have mortgage payment interest reversed and missed payment deadlines overturned, while his lender could face criminal and civil penalties, Hall said.
Mary Linge, director of homeownership and education at Poughkeepsie-based Hudson River Housing, addressed the challenges facing local residents on the brink of foreclosure at the news conference.
She oversees the NeighborWorks Homeownership Center, where 94 percent of the loan modification applicants are awaiting final outcome.
About 5 percent were successful and 1 percent foreclosed.
Linge said banks often require her foreclosure prevention counselors to refax the same documents over and over, delaying the approval process.
"That is a great frustration for us," she said.
Meanwhile, the fees and penalties mount as homeowners wait for approval, and then there's the "toll it takes on their families ," Linge added.
The climax of DeMasi's stress came in December 2007, when he said his lender threatened to have him arrested and throw his wife, Patty, on the street.
"(Patty) paced the floor and didn't sleep. She looked out the window to see if cops were coming," he said.
Countrywide didn't immediately respond.
Not everyone is supportive of the financial reform act.
Critics say it ignores Fannie Mae and Freddie Mac, the $5 trillion mortgage giants whose questionable lending helped start a collapse in the housing market.
Hall addressed that concern by saying, "No bill is perfect. … It's how we got 60 (Senate) votes" for the bill to pass.
Another criticism is against creating more government oversight and layers of agencies with potentially conflicting missions.
Hall pointed out DeMasi's situation as the "case in point of why we needed to pass this bill."
Poughkeepsie Journal: Hall event explains financial oversight
July 27, 2010
For eight years, Doug DeMasi Sr. has been embroiled in the fight of his life — to keep the bank from owning his house in Beekman.
Help could be coming in the form of the newly created Consumer Financial Protection Bureau. A law signed by President Barack Obama on Wednesday gives the bureau the power to shield Americans from unfair and abusive financial practices — while specifics on those enforcement policies are in development.
Accused of late payments by his mortgage company, Countrywide Home Loans, DeMasi said he has paid on time and has certified mail receipts to prove it.
"They have been crucifying us," the 57-year-old patent researcher said Monday at a news conference highlighting the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
The massive 2,300-page legislation establishes the consumer protection agency to police products such as home mortgages, car loans and credit cards; overhauls financial sector regulations; and gives the Treasury Department new authority over nonbank financial firms, such as insurance companies.
Rep. John Hall, D-Dover Plains, organized the event at the City of Poughkeepsie NeighborWorks Homeownership Center and spoke about the benefits of the new law for local families.
Hall said the watchdog agency would have the power to threaten "or else" to predatory financial firms that take advantage of consumers when they buy houses, secure college loans, invest their pensions or apply for a credit card.
The act will make sure consumers get the clear, accurate information they need to shop for financial products by shining a light on hidden fees and deceptive business practices, the congressman said.
If not at fault, DeMasi could potentially have mortgage payment interest reversed and missed payment deadlines overturned, while his lender could face criminal and civil penalties, Hall said.
Mary Linge, director of homeownership and education at Poughkeepsie-based Hudson River Housing, addressed the challenges facing local residents on the brink of foreclosure at the news conference.
She oversees the NeighborWorks Homeownership Center, where 94 percent of the loan modification applicants are awaiting final outcome.
About 5 percent were successful and 1 percent foreclosed.
Linge said banks often require her foreclosure prevention counselors to refax the same documents over and over, delaying the approval process.
"That is a great frustration for us," she said.
Meanwhile, the fees and penalties mount as homeowners wait for approval, and then there's the "toll it takes on their families ," Linge added.
The climax of DeMasi's stress came in December 2007, when he said his lender threatened to have him arrested and throw his wife, Patty, on the street.
"(Patty) paced the floor and didn't sleep. She looked out the window to see if cops were coming," he said.
Countrywide didn't immediately respond.
Not everyone is supportive of the financial reform act.
Critics say it ignores Fannie Mae and Freddie Mac, the $5 trillion mortgage giants whose questionable lending helped start a collapse in the housing market.
Hall addressed that concern by saying, "No bill is perfect. … It's how we got 60 (Senate) votes" for the bill to pass.
Another criticism is against creating more government oversight and layers of agencies with potentially conflicting missions.
Hall pointed out DeMasi's situation as the "case in point of why we needed to pass this bill."
