The housing crisis of 2008-2009 left a devastating impact on the millions of Americans who lost, or were threatened to lose, their homes to Wall Street’s greed. While the United States Government bailed out Wall Street, that same effort was not passed down to homeowners and their families who lost their most valuable asset.
For the last 9 years, the Estavillo Law Group has been an advocate for homeowners whose houses were illegally foreclosed upon during the housing crisis. Our fights against the Big Banks, Wells Fargo, Bank of America, the Bank of New York Mellon, JP Morgan Chase, and more, have resulted in several victories and have set a precedent throughout California.
Have We Not Learned Our Lesson?
On June 8, 2017 the Republican Controlled House of Representatives passed a bill that would potentially reverse the regulations set by Obama’s The Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Act, for short, was signed into law in 2010 by Obama as a way of protecting America from another financial meltdown. The Act purports to decrease the risks associated with the 2008/2009 crisis by setting restrictions, tightening regulations, reducing financial risk factors, establishing Watch Dog Groups, and aiding whistle blowers, among other stipulations.
The Republican-backed bill, the Financial Choice Act, exempts certain financial institutions from the regulations imposed by the Dodd-Frank Act, opening the possibility that the United States could essentially repeat history with another housing and financial crisis. The bill has now been sent to the Senate where if passed would be sent to President Trump who would sign it into law. However there is no guarantee that the Senate will concur with the House.
According to an article by The New York Times, Representative Jeb Hensarling, Republican of Texas and chairman of the House Financial Services Committee, justifies the Financial Choice Act. “Our plan replaces Dodd-Frank’s growth-strangling regulations on small banks and credit unions with reforms that expand access to capital so small businesses on Main Street can grow and create jobs.”
On March 14, 2018, the US Senate passed a bill 67 to 31, easing financial regulations and reducing oversight for banks with assets below $250 billion dollars.
Prepare to Rinse and Repeat
The Financial Choice Act could have devastating effects on California. With properties in the Bay Area, Santa Barbara, Los Angeles, Orange County and San Diego areas increasing in value and financial regulations loosened, we run the risk of people borrowing money on risky loans. If Wall Street and the Lenders are allowed to write toxic loans again, the fallout will be the same. Artificially inflated home prices will dominate the market, homeowners will not be able to afford their payments, and the “bubble” will burst again-causing another crisis and putting Wall Street back in power at the hands of the people.
No one served jail time or was held accountable for the 2008-2009 crisis, which allows Wall Street to continue to push for decreased regulations for their own greed. The money that Wall Street is banking on for their own wealthy pleasure is more important than helping people keep a roof over their heads, money in their pockets, and creating a financially stable Country or World. The 2008-2009 financial meltdown created a worldwide recession that is still being felt here in the United States and in Europe.
Fighting to Keep Families in Their Homes
At the Estavillo Law Group, we continue to fight against Wall Street and the Big Banks and for the rights of the homeowner. We have seen first-hand what effects loosened regulations and risky loans have done to the future of America.
If you or someone you know has been affected by the financial and housing crisis, we are happy to provide a free legal consultation. Contact us or call 510-982-3001. We are open Monday-Friday from 8:30 am -5:00 pm.