Mr. Wilson, i want to get back to you. In september 2012, icba survey found 55 of bankers decreased their Mortgage Business or stopped providing higher priced Mortgage Loans and higher priced mortgages that took effect in 2010. I wondered if your bank still does offer an issue mortgages and if so, have you decreased the number of mortgages because of regulatory uncertainty . Yes, sir. Most all of our mortgages would have fallen into the higher priced mortgage and we do not have the staff capabilities to escrow insurance and taxes. Again, the last few seconds, thank you so much, all of you for being here and we do want to figure this out. We need to clean this up and ultimately i want to see Community Banks that are vibrant in our communities again and with that i yield back, chairman. The chair recognizes the gentleman from colorado. Thank you, mr. Chair. Somebody mentioned the incredible cost of dodd frank to the system, but i just want to start that before dodd frank in the summer 20
Like to mention we have a proposal improve the Small Business provisions of the Affordable Care act to try to both simplify and make the tax credits better for Small Businesses. That is feedback weve received. About that, and that is something that is included in our budget. Now turning to a couple i think, hopefully more substantive questions that i could get to with you, madam secretary, i was pleased to see the democratic chip reauthorization bill included in the president s budget extended medicaid primary care increase. Rate of increase was initially included in the aca is absolutely critical. For the last two years boosted payments to doctors treating most vulnerable populations making access achievable goal not just a tar get. The payment at end of last year will result in medicare provider payments cut on average of 43 . Over 50 in some states. Impact on wait times could be drastic and immediate. I was hoping madam secretary you could comment on importance of parity to medicare
Creditors are subject to loss. [captions Copyright National cable satellite corp. 2014] [captions performed by national captioning institute] under doddfrank it says the Share Holders are going to get wiped out. Thats not what it says. It says the creditors who put the debt in, knowing it is secondary capital, are going to take the loss. In the meantime, the creditors at the operating units can flea. They can get their money. They can go, and they will. Therefore, they are protected. Therefore, if im a regional bank, i dont have that assurance under title one or title 2. Title 2, particularly. So it does have the effect of favoring one group over another. So i think the intent of doddfrank is to make sure that shareholders and creditors are at risk. Some creditors. Shareholders and some creditors are at risk. Inso many conveniencey or a winddown is the last result. We heard this morning that the banks still need more capital. They are still too overleveraged. Then we heard, no matter h
Why are you having this temporary liquidity need . Many times it is because you are insolvent or perceived to be insolvent, so you get this liquidity. Where does this capital come from . How is that different from a small or mediumsized enterprise . They are taken in. Creditors are subject to loss. You can dodd frank choose not to believe it, but the law says the shareholders are going to get wiped out. That what it says. Who putthe creditors the debt in, knowing it secondary capital, are going to take a loss. Creditors can flee. They can go, and they will. They are protected. If i am a regional bank, i dont have that assurance. Effect ofve the favoring one group over another. I think the intent is to make sure shareholders and creditors. Re at risk some creditors. Shareholders in some creditors are at risk. Insolvency or a wind down is the last resort. Let hope we dont get there, but in the meantime, the defensive mechanism is capital. We heard from sheila bair who said the bank still
Looked at and chosen that not to offer at this time until we figure out the risk. Were a little behind the curve on some of the new technologies. Thats the impact of the risks that we try to face each day. I want to get back to a few more questions with you. I want to just remind this committee where this all started from. I want to go back to september 25th, 2003. A hearing here at Financial Services committee hearing. Chairman frank, you said on the record, i do not want fannie and freddie to be Just Another Bank. If they do not more than Just Another Bank sorry. If they were not going to do more than another bank would be because they have so many advantages then we do not need them. And so therefore, i do not think, i do not want the same kind of focus on safety that we have at occ and ots. I want to roll the dice a little bit more on the situation toward subsidized housing. In the gsc act congress initially specified Affordable Housing goals of 30 of mortgage purposes. That goal i