The second in a series of three full Committee hearings examining the impact of the Dodd-Frank Act on American prosperity, freedom, and financial stability five years after the controversial law was enacted took place in the House Financial Services Committee on Tuesday. A recurring theme at the hearing was that Dodd-Frank represented overregulation which has stifled economic recovery rather than accelerated it as was intended.
Witness Peter Wallison presented a chart that compared recovery from the financial crisis of 2008 with that of previous crises and noted that from 2009 until the passage of Dodd-Frank in July 2010, economic recovery was on the same pace as previous recoveries. He contended that recovery began to slow down when Dodd-Frank was signed into law. Former Congressman Brad Miller, a witness at the hearing, admitted there was more work to be done was far as creating an economy that allows Americans to grow and prosper, but he said he believed Americans are better off with Dodd-Frank than without it.
Freddie Mac's Take Root program in Milwaukee, one of the areas hit hardest by the foreclosure crisis, has resulted in more than 16,400 low- to moderate-income residents being able to buy or fix a home, strengthen finances, or avoid foreclosure. The Take Root Milwaukee program is one of three such programs Freddie Mac launched in the wake of the housing crisis. The other two are in Chicago and South Florida, which were two areas also hit hard by foreclosures.