Saturday, April 21 , 2018, 6:47 pm | Fair 70º

 
 
 
 

Rep. Lois Capps: Bill Strengthens Mortgage and Financial Fraud Enforcement

Legislation creates commission to fully investigate causes of financial crisis

Rep. Lois Capps, D-Santa Barbara, voted for legislation on Wednesday that would significantly enhance the enforcement and prosecution of mortgage and corporate fraud in an effort to better protect consumers. The Fraud Enforcement and Recovery Act (FERA),  S. 386, will provide vital funding and tools to help law enforcement pursue and prosecute the type of financial fraud that is widely thought to have contributed to the current financial crisis. The legislation will also establish a bipartisan commission to fully investigate the causes of the near-collapse of our financial system and the ensuing recession in an effort to prevent this type of crisis from occurring again.

“People throughout the Central and South Coasts have watched in horror over the past year as their retirement accounts have dwindled and their home values have declined as part of the larger economic crisis,” said Capps. “Much of this economic ruin probably could have been prevented had our financial regulations been stronger and more effective. The Fraud Enforcement and Recovery Act provides law enforcement with the tools it needs to stop the type of financial fraud that got us into this current mess and ensures that we will understand what conditions led to this crisis as we move forward with common sense reforms to prevent it from happening again in the future.”

The investigative commission created by this legislation will have subpoena power, and will seek to bring accountability to a system where reckless behavior had gone unchecked in the past. It is similar to the Pecora Commission established to investigate the Stock Market Crash of 1929. That commission’s investigation uncovered the fraudulent and unscrupulous practices on Wall Street that led to the Great Depression and laid the groundwork for the regulatory structure that served the country for decades. That regulatory framework is woefully out-of-date and this helped create the conditions leading to our current economic crisis.

The Fraud Enforcement and Recovery Act is the latest in a series of consumer protection reforms recently passed by the House. Last week, the House passed the Credit Cardholders’ Bill of Rights (H.R. 627), cracks down on credit card issuers and includes tough new protections for consumers facing excessive credit card fees, sky-high interest rates and unfair agreements. In addition, the House is expected to vote later this week on the Mortgage Reform and Anti-Predatory Lending Act (H.R. 1728) to curb abusive and predatory lending.

— Emily Kryder is communications director for Rep. Lois Capps, D-Santa Barbara.

 
  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click Here to Get Started >

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made through PayPal below, or click here for information on recurring credit-card payments.

Thank you for your vital support.


Maestro, Mastercard, Visa, American Express, Discover, Debit

Reader Comments

Noozhawk is no longer accepting reader comments on our articles. Click here for the announcement. Readers are instead invited to submit letters to the editor by emailing them to [email protected]. Please provide your full name and community, as well as contact information for verification purposes only.

Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.

Sign Up Now >