Four myths in the battle over Dodd-Frank
Attorney Daniella Casseres Quoted in the American Banker
Kate Berry, American Banker
In their drive to revamp the Dodd-Frank Act, Republicans have repeatedly asserted that the 2010 financial reform law has increased the cost of consumer lending and cut off access to credit.
"Thanks to Dodd-Frank’s red tape, consumers pay more for mortgages, credit cards and auto loans — that is if consumers can even get access to them," House Financial Services Committee Chairman Jeb Hensarling said in a typical recent speech.
Yet the available data indicates otherwise. Consumer credit has roared back in the six years since Dodd-Frank, with a 46% jump in outstanding consumer credit to $3.8 trillion, according to recent Federal Reserve data.
"The best available data just don't support their claims," said Marc Jarsulic, vice president of economic policy at the Center for American Progress and a former chief economist for the Senate Banking Committee.
It is plausible that lending in recent years was weaker than it would otherwise have been without the sundry regulatory costs imposed by Dodd-Frank, which have likely been a contributing factor in bank consolidation since the law's passage.
"I think it did raise costs," said Daniella Casseres, a principal at the law firm Offit Kurman. "Rates would have gone down more" absent regulatory pressures, she said.
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ABOUT DANIELLA CASSERES
Daniella Casseres’ legal practice focuses on laws and regulations governing mortgage lenders, mortgage brokers, financial institutions and consumer finance companies. She regularly advises clients on state and federal compliance laws and regulations including fair lending, advertising, licensing, privacy, TILA, RESPA, FHA, FCRA, and BSA requirements.
Ms. Casseres drafts and reviews wholesale lending and mortgage loan purchase agreements, and structures loan originator compensation for mortgage companies. She also represents clients in federal and state regulatory investigations, and assists in related litigation matters.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 135 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our eleven offices serve individual and corporate clients in the Virginia, Washington, DC, Maryland, Delaware, Pennsylvania, New Jersey, and New York City. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
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