Peninsula Financial Advisor Larry Krause Explains How Financial Reform Affects the Average American

San Bruno, CA (Vocus/PRWEB) February 09, 2011

The financial crisis of 2008, the worst shock to the global financial system since the Great Depression, pushed lawmakers to enact sweeping reforms in an attempt to prevent such a devastating disruption to the economy from happening again. The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed by congress in July 2010, has far-reaching regulatory changes that will be felt not only banks and Wall Street, but also average Americans. Larry Krause, a Peninsula financial advice expert and president of Tessara Financial Advisors, Inc., explains some of the ways the new legislation aimed at lenders, banks and ratings agencies affect the average person.

The Dodd-Frank Act changes rules governing credit and lending practices of mortgage lenders in order to better protect borrowers from predatory lending. Lenders are now required to verify that borrowers can reasonably be expected to be able to repay the entire loan amount, including taxes and fees. While these rules may limit the size of the mortgage you qualify for, theyre intended to prevent you from being steered into a loan thats not suitable for you, says Bay Area money manager Larry Krause. Lenders now cannot refinance existing mortgages unless doing so would benefit the borrower. The Dodd-Frank Act also limits balloon payments and prepayment penalties.

One major provision of the Dodd-Frank Act that affects average citizens is the creation of the Bureau of Consumer Financial Protection, a federal regulatory agency that oversees consumer financial products and services. In addition to regulating consumer products such as mortgages and student loans, the Bureau tracks complaints, ensures equal opportunity to credit, and promotes financial literacy among consumers.

Changes to banking rules and regulations will also be felt by consumers. The temporary increase in the Federal Deposit Insurance Corporation (FDIC) guarantee on bank deposits to $ 250,000 is now permanent. This increase in protection means that if you and your spouse each have separate deposit accounts as well as a single joint account at a single bank, the two of you could qualify for as much as $ 1 million worth of total FDIC protection for those accounts, according to Krause.

Banks are also now required to hold larger amounts in reserve, and retain at least a 5% stake in any potentially risky securitized loans they make. They face new limits on proprietary trading and derivative swaps. These measures aim to prevent future bank bailouts that come at the expense of taxpayers.

Lack of transparency from credit rating agencies is often cited as one of the causes of the financial crisis. The Dodd-Frank Act addresses this in several ways: Free access to credit scores is now available for those whose credit score led to them being turned down for a credit card, house or job.

Credit ratings agencies are also now be subject to Securities and Exchange Commission (SEC) oversight, and can face fines for faulty ratings. The new Office of the Investor Advocate within the SEC was created to help individual investors with resolutions to problems. This gives investors greater confidence in their investments, as does the provision that allows investors to sue the ratings agencies for issuing knowingly flawed ratings.

The expansive Dodd-Frank Act covers many other areas, from SEC registration of hedge funds to whistleblower protection and incentives to guidelines for orderly liquidation in the event of bank failure. Not all provisions of the Dodd-Frank Act will be implemented or felt by average consumers right away. Thats why its important to have someone help you monitor those regulations as they evolve and evaluate just how they might affect you, says Krause. Dont hesitate to seek expert advice.

For more information about the new financial reform legislation, or any other services from Tessara Financial Advisors, call (800) 331-5843 or visit their website at

About Tessara Financial Advisors, Inc.

Tessara Financial Advisors, Inc. is a Registered Bay Area Investment Advice firm that specializes in providing the entire spectrum of wealth management services, including financial planning, retirement planning, life and long-term care insurance analysis, tax planning, estate planning, charitable giving, asset protection planning and forming strategic alliances. Their goal is to build long term relationships with clients and their advisors that are mutually beneficial and built on the highest level of integrity, trust and service.

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1st Associates Bank loan Servicing, LLC SVP, Larry Chiavaro, to Communicate at Solar Power Finance & Expenditure Summit

San Diego, CA (PRWEB) March 14, 2013

Larry Chiavaro, SVP of Initial Associates Loan Servicing, will communicate at the Photo voltaic Electricity Finance and Expenditure Summit in San Diego, California on Monday, March 18th. Chiavaro will discuss the views of rating organizations on solar securitization.


Chiavaro has robust historical ties to the score companies created over several years of experience in the buyer finance sector. At First Associates, Chiavaro has created a speedily developing backup servicing organization to permit better ranking company self-assurance in client personal debt transactions. He was instrumental in building and executing 1st Associates new Integrated Solar Backup servicing, the very first again up provider to combine the two financial and O&ampM backup.


Solar securitization is a essential element of growth in the residential marketplace, said Larry Chiavaro. The potential to draw in a broader trader base for long phrase financial debt will be the catalyst for speedy buyer photo voltaic adoption. There have been several other lessors of running belongings that have tapped into the securitization market place in the earlier. Photo voltaic is a new asset class to the market but it has many precedents to attract from. The market is operating with each other to produce the typical procedures, guidelines and files that will enable the generation of a sturdy solar securitization marketplace and Initial Associates is pleased to be element of that energy.


The Photo voltaic Electricity Finance &amp Investment Summit is identified as the foremost gathering location for the industrys offer makers, explained Gretchen Luchsinger, President of Infocast. Have been happy to have Mr. Chiavaro sign up for us this 12 months. He is extremely well connected in the business and is always a fantastic source of information and perception.


Additional info relating to SPFIS can be identified on the internet at


About First Associates Financial loan Servicing&#thirteen

Initial Associates is the nations leading solar servicing firms comprised of a staff of professionals with planet course experience, first-fee information and excellent engineering. Very first Associates provides ideal-in-course servicing for titled property and unsecured mortgage portfolios with a staff that is dedicated to offering the optimum stage of provider to borrowers although maximizing lender and trader returns. More info is offered at


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