Obama threatens veto of Wall St. reform tweaks

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President Obama is threatening to veto a pair of GOP bills set to pass the House, arguing they would undercut portions of the Dodd-Frank financial reform law.

The White House on Monday said that if presented with either of the two bills, Obama’s advisers would recommend that he veto them for weakening “key consumer protections.”

{mosads}The vows follow through on Obama’s promise during his most recent State of the Union address, when he said he would veto any measures sent to him by a GOP Congress that water down the landmark financial reform law.

One of the measures, a bill aimed at the manufacturing housing industry from Rep. Stephen Fincher (R-Tenn.), would put some home buyers at risk for predatory lending, by allowing some lenders to offer costlier loans without having to consider the ability to repay them, the White House argued.

The White House contends that the second bill, from Rep. Bill Huizenga (R-Mich.), would also clear the way for more homeowners to end up with mortgages they cannot afford by allowing lenders to add more points and fees to mortgages.

Huizenga’s office rejected that characterization, saying the bill had language making sure borrowers did not end up with mortgages they could not repay.

The measures on tap are two of several House Republicans have crafted and aim to pass in the coming days. House Majority Leader Kevin McCarthy (R-Calif.) said in a memo to members earlier this month the bills are aimed at cutting red tape that stifle financial institutions.

“Consumers and taxpayers now have fewer community financial institutions to help them achieve financial independence. Without these institutions, it is harder to buy a car so they can drive to work, send a child to college, or start a small business,” the No. 2 House Republican said.

Both bills were passed by the House Financial Services Committee in March, garnering support from a number of committee Democrats.

— This story was updated at 6:18 p.m.

Tags Dodd–Frank Wall Street Reform and Consumer Protection Act Late-2000s financial crisis Predatory lending Stephen Fincher United States federal banking legislation

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