Springfield Financial Experts Weigh in on Dodd-Frank
SPRINGFIELD, Ill. (WRSP) —
Benjamin Edwards financial consultant and Newschannel 20 financial expert Dan Pietroburgo, CFP, MBA, says Dodd-Frank was put in place after the financial crisis and was supposed to prevent it from happening again.
"Handcuff banks to a certain extent, to protect consumers, to keep banks from engaging in practices that could put their clients in harm’s way," Dan Pietroburgo said.
Hickory Point Bank Vice President Robert Mizeur says many regulations centered around making sure consumers could actually pay off the loans they took out.
“A consumer would go in and there was no income verification, no documentation verification, people could get a loan very easily. And there was no review of whether they did have the ability to actually pay for it," Mizeur said.
President Donald Trump says he wants to repeal aspects of Dodd-Frank, which he says will stimulate the economy. Mizeur says if loans are deregulated, it would be easier for the more rural banks in this area to afford meeting requirements to lend money.
"It has become more burdensome on a lot of banks, especially smaller community banks as well that might not be able to keep up with one," Mizeur said. “Just interpreting the rules are, and then how to follow them as a result."
Mizeur says more competitors could lead to more available loans and better rates on anything from car loans to small business loans and mortgages. But you need to make sure you can afford them.
"Do what you need to do to understand the product, and see what's best for you and your family and your situation."
Financial experts say you shouldn't overreact to any of president trumps recent actions. Trump’s executive order called for a review of the regulations in Dodd-Frank. He has said he wants regulations scaled back, but none actually have been yet.