What are Financial Services?
Financial services affect all aspects of our lives, from our student loans to our the mortgages on our homes, financial services are a major part of the American economy.
That's why I believe the federal government should play a consistent and well balanced role when working to benefit the financial sector.
Though the U.S. economy has been structured to survive both positive and negative market fluctuation, I support legislation that parallels our changing economy in an effort to bring stability and future economic growth.
Affordable Housing
It is also my belief that all Americans deserve affordable housing. I am a strong supporter of legislation like the American Recovery and Reinvestment Act of 2009 which made vast investments to financial lending institutions who extend home mortgages to new homeowners. This bill also known as the "stimulus" package made sweeping reforms to the first-time homebuyer tax credit which is now worth $8,000.
I've also supported legislation to provide homebuyer tax credits to veterans serving overseas and to current homeowners who are looking to either downsize or upgrade their living situation. The housing market is a fundamental tenet of the American economy and in many ways our financial security is linked to the health of America's housing.
Consumer Protections
Consumer Protections are also needed to secure the best interests of the American consumer. That's why in 2009, I voted and helped pass into law the following consumer protections:
1. The Mortgage Reform and Anti-Predatory Lending Act
2. The Fraud Enforcement and Recovery Act
3. Credit Cardholder's Bill of Rights
The Mortgage Reform and Anti-Predatory Lending Act will curb abusive and predatory lending and will outlaw many of the egregious industry practices that sparked the sub-prime lending meltdown in 2008.
The Fraud Enforcement and Recovery Act provides critical funding and updated tools to help law enforcement pursue and prosecute the mortgage and corporate fraud that impacted millions of Americans.
The Credit Cardholder's Bill of Rights passed the House in May 2009 and was signed into law by President Obama on May 22nd. This landmark legislation will set forth unprecedented new laws to protect Americans who have credit cards. It will empower consumers by limiting the abusive practices of credit card companies, such as unfair interest rate hikes, hidden new policies, small print statements, double-cycle billing and retroactive interest rate increases.
Expedited CARD Reform for Consumers Act was a bipartisan, common sense measure enacted and signed into law to allow for new protections for consumers against unfair fees and interest rate increases, along with enforcement of regulations in the credit card industry to stop abusive practices. Congressman Cuellar helped to pass this to speed up credit card reforms effective date to December 1, 2009.
Student Loans
Education is the great equalizer in society and I've worked hard to increase student financial aid opportunities since coming to Congress in 2005. This year, I've helped pass into law transformative student aid legislation to boost federal loan programs for our students.
On March 31, 2009 the House passed the Edward M. Kennedy Serve America Act, H.R. 1388, legislation which increases volunteer opportunities and provides incentives for students to volunteer across America. In fact, middle and high school students can participate in summer service programs to earn a $500 education award to be used for college costs.
In 2009, I also helped pass a plan to make college more affordable. The American Recovery and Reinvestment Act included a higher education tax credit worth $2,500 compared to the current $1,800 maximum, to help families send their children to college. We also increased the Pell Grant by $500, for a maximum of $5,350 in 2009 and $5,500 in 2010. Plus, we added $200 million to the vital Work Study Program which helps undergraduate students pursue higher education while working. This increased funding will allow an additional 133,000 students to participate.
In September 2009, House passed Student Aid and Fiscal Responsibility Act of 2009—simplifies student financial aid forms, makes federal student loan program more cost-effective and efficient, uses Direct Loan program to cut out the middle man and to ensure students receive the same loans, no matter what happens in the economy.
- Among its many provisions, it increases the maximum Pell Grant from $5,350 in 2009 to $5,550 in 2010 and $6,900 in 2019 and keeps interest rates low on subsidized federal student loans.
The Economy and Jobs
Since the recession began, millions of Americans have lost their jobs. The housing market meltdown has forced Americans out of their homes at an unprecedented rate in the last quarter century. That's why moving forward we have to stimulate our labor force and stabilize our financial markets to ensure the average American can weather this economic storm.
That is why I supported the American Recovery and Reinvestment Act of 2009. This legislation has so far created over 640,000 jobs as of 01/05/09 and it helped 95% of all hard working Americans by giving them an immediate tax credit in their paychecks. If you'd like to keep track of how the Recovery Act has helped Americans and invested in our national infrastructure, please visit: http://www.recovery.gov/Pages/home.aspx
