Dear Senators Mark Warner and Jim Webb,
I am a business person as Senator Warner was. And like both the Senators, I am active in issues surrounding our nation and our future.
As the owner of a mortgage brokerage for the past 18 years nothing disturbs me as much as the implementation of the Frank-Dodd bill by the Federal Reserve Board. It is a crushing new regiment designed to smother small business, eliminate them as competition and further consolidate the remaining power in the hands of 4 or 5 large banks.
This comes at a fragile time for our economy when you and our President are trying to grow jobs and bring stability to the market. This action by the privately owned Federal Reserve further exacerbates the problem and will lead to reduced competition in the marketplace further harming consumers.
In the recent rule the Fed EXPLICITLY acknowledges in plain English that they are aware that this rule will most likely drive small businesses from this industry (i.e. brokers).
Senator Warner, you are a former businessman unlike many of your fellow colleagues who come from the legal profession where each party is represented. I believe that this is a concerted move by the financial industry to eliminate any representation of the borrower in financial dealings with banks.
Plaintiffs and defendants are represented. Even buyers and sellers in real estate transactions operate under clearly defined agency law. Fiduciary responsibilities are known and abided by. In what is perhaps the largest transaction that most consumers will make in their lifetimes they are left without representation, facing an adversary who does not have to disclose the full fees that they will receive for the mortgage loan created.
If you value a free and open marketplace, if you value the American spirit of small business, if you value competition in the marketplace that will benefit consumers then you and all Americans must join with the National Association of Independent Housing Professionals (NAIMP) and the National Association of Mortgage Brokers (NAMB) to stop this travesty now.
Stephen A Myers