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Hilda Solis Resigns as Labor Secretary

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Description
FBN’s Diane Macedo on Hilda Solis’ decision to resign as Labor Secretary.
Duration 1:31
Date Jan 10, 2013

This transcript is automatically generated

Good morning everyone the Consumer Financial Protection Bureau is issuing new rules in an effort to prevent the relaxed mortgage lending practices.

That helped push the US economy into a recession.

The bureau says guidelines being announced today will force banks to verify a borrower's ability to repay loans.

That'll include not lending to borrowers whose debt exceeds 43% of their income.

CF PB deputy director Rajiv dot -- that the rules are needed because of the lack of common sense.

The mortgage market is tight and the financial crisis affected all of us.

Mostly because mortgage credit that was extended during 200520062007.

Those were terrible mortgage loans that were made.

Lots of mortgages that were made in defiance of traditional standards and conservative discipline and common sense.

And putting some common sense rules of the road in place.

So that that doesn't happen again is a big part of what -- yet -- is trying to get done.

The new rules will also provide some legal guards for lenders -- issue safer lower priced loan products.

Labour secretary -- still -- leaving the Obama administration so -- longtime member.

Of the president's cabinet and the first Latina to -- a major federal agency submitted her resignation letter to president bombing yesterday.

She says she made the decision to leave after discussing it.

But -- -- close friends unions have -- so at least for aggressive enforcement of wage laws and job safety regulations.

Business groups have criticized her for not taking a more cooperative approach.