Regulators Repeat Exactly What They Did During the Last Housing Boom

[robert l. bentham]

The Dodd-Frank Act was supposed to require securitizers to retain 5 percent of the credit risk of the mortgage-backed securities that they issued, in order to reduce the risk of a repeat of the last housing bubble. Today, the federal financial regulators said, “Whatever,” and ignored that requirement. In particular, they created an exemption that would have covered at least 98 percent of all mortgages issued last year.
Why? Because

“adding additional layers of regulation would have contracted credit for first time home buyers and borrowers without large down payments, and prevented private capital from entering the market.”​

That’s according to the head of the Mortgage Bankers Association.

http://truth-out.org/opinion/item/1...ly-what-they-did-during-the-last-housing-boom

 

[FluffyMcDeath]

Warren needs Spitzer and Black