Dodd-Frank Reform Gets Messy | Senate to Debate Bill With 100 Proposed Amendments
In the ongoing policy overhaul of the Trump administration, Dodd-Frank is up for major changes. Many in the housing industry have voiced support for the bill, including the National Association of Federally Insured Credit Unions, which commented that “regulatory burden is the top challenge facing credit unions today.” The proposed bill has also received support from the Mortgage Bankers Association, the national Association of Home Builders and the Independent Community Bankers of America.
Proponents argue that the amendments will help give clarity to the TRID rule and will free the housing industry from suffocating regulations. However, those against the bill, including the Center for Responsible Lending, the National Community Reinvestment Coalition and the National Consumer Law Center, have voiced concerns that the rollback of Dodd-Frank puts consumers at risk, particularly if they are low-income or a minority. According to Senior Legislative Counsel of the Center for Responsible Lending Yana Miles, “This bill encourages the finance industry to engage in the type of reckless lending that pulled Americans into a Great Recession – just under a decade ago,” Miles said. “Among its many dangerous provisions, the bill enables poor underwriting, risky mortgages, deceptively steering consumers into overpriced loans, surprise homeowner costs that make defaults more likely and appraisal abuses.”
With almost 20 bipartisan co-sponsors, the bill is expected to pass in the Senate. Growing concerns surrounding non-discriminatory lending may still upend this policy overhaul in the House of Representatives though.
Janus is closely following all policy updates affecting the home lending industry and will report details on the Dodd-Frank reform bill as they develop. Check back soon for the latest.