With everything that has happened regarding the housing market in the past 2 to 3 years, one wonders where the housing market will go next. It has been said that if the federal government would repeal the Dodd / Frank regulation tomorrow, we'd see the housing market improve overnight. Is that true? Would something like that improve the market for those attempting to market Lawrence KS Homes for Sale? We know how difficult it can be to get Lawrence KS Real Estate for Sale to move to a successful close. Let's take a closer look at the legislation.
That single piece of legislation has affected all of the federal financial regulatory agencies institutions and by all measures has made doing business and getting home loans, far more difficult. Wikipedia defines the Dodd-Frank Consumer Protection Act as follows:
"The Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173) is a federal statute in the United States that was signed into law by President Barack Obama on July 21, 2010.[1] The Act implements financial regulatory reform sponsored by the Democratically controlled 111th United States Congress and the Obama administration. Passed as a response to the late-2000s recession, the Act brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great Depression,[2][3][4] representing a significant change in the American financial regulatory environment affecting all Federal financial regulatory agencies and almost every aspect of the nation's financial services industry.
As with other major financial reforms, some legal and financial scholars on both sides of the political spectrum have criticized the law, arguing on the one hand that the reforms were insufficient to prevent another financial crisis or additional "bail outs" of financial institutions, and on the other hand that the reforms went too far and would unduly restrict the ability of banks and other financial institutions to make loans.[7
In addition to the headline regulatory changes covering capital investment by banks and insurance companies, the Act introduces new regulation of hedge funds, alters the definition of accredited investors, requires reporting by all public companies on CEO to median employee pay ratios and other compensation data, enforces equitable access to credit for consumers, and provides incentives to promote banking among low- and medium-income residents,
The law was initially proposed by the Obama Administration in June 2009, when the White House sent a series of proposed bills to Congress. A version of the legislation was introduced in the House in July 2009. On December 2, 2009, revised versions were introduced in the House of Representatives by Barney Frank, and in the Senate Banking Committee by Chairman Chris Dodd. Due to their involvement with the bill, the conference committee that reported on June 25, 2010,[1] voted to name the bill after the two members of Congress.[8]"
Okay, so now that we've read that long definition of the legislation, what does it really mean and how does it affect the housing / mortgage industry and Real Estate for Sale Lawrence KS? Well. I speak from experience when I tell you that it has caused the lending institutions to limit many of the loans they'll write for buyers of Lawrence KS Homes for Sale. Unless buyers can come up with larger down payments, conventional loans are out of the question and will not be given.
As a result of this, which in turn is a result of the legislation, we are seeing more and more loans being backed by Fannie Mae and Freddie Mac. That's unfortunate because these institutions are largely responsible for the housing market crash. If you want to know the truth about that claim, do some additional research.
So has Barney Frank and Chris Dodd's "Consumer Protection Act" really protected us? You'll have to draw your own conclusion. I'm just hopeful that the local Lawrence lenders will be able to navigate all the additional federal red tape and still provide home loans for those looking to purchase Homes for Sale Lawrence KS.
