It’s Comparable, Comparable, Comparable

Fannie Mae and Freddie Mac announced that they will be loosening the penalties they impose on mortgage originators. A deluge of mortgages defaulted during the great recession, resulting in the current regulations designed to help resist a repeat.  Much of the tougher rules govern percent of market value that can be mortgaged, income to debt […]

Regulatory Expansion via “Too Big to Fail”

When we can, consumers save for a house, for retirement, for college, or for unexpected expenses.  Savings sometimes molder in bank accounts, but wise savers use a portfolio of certificates of deposit, mutual funds, common stocks and bonds.   In the depths of the housing-finance recession, the federal government loaned billions to mortgage-lending banks they deemed […]

The Real World Quest for Mortgages

Before Dodd-Frank, banks faced strong pressure to lend so that more people could own a home regardless of their ability to repay.   Dodd-Frank will spawn byzantine regulation enacting bank capital requirements, retention of 5% interest in securitized mortgages  and other mortgage reforms.  Most regulations required under Dodd-Frank have yet to be proclaimed, so banks are […]