Happy Days Good-bye Dodd-Frank????

Question

It looks like Dodd-Frank will be amended or sent on its way  Good news

http://thehill.com/business-a-lobbying/331926-hous...

Jeff B. · Answer

The 'deregulation' favors the BIG banks, not REI or the consumer.

[rant on]

With both houses and the Whitehouse being united, we will see actions along classical partisan and philosophical lines rather than members of Congress acting in the interest of their constituents.

Most if not all actions this year will be IMO, to mindlessly undo as much as possible of the previous administration just because they can.  The Net Neutrality bill is another being revoked.

sorry, tried to be a soft as possible here.

[/rant on]

Chris Mason · Answer

CFPB heralded the death of the small mom-and-pop mortgage brokerage. The flat overhead costs of compliance are too great for a small firm, or for an innovator that wants to start a small mortgage firm & grow. CFPB heavily favors large institutions at the expense of small and local institutions. I could go on about my issues with CFPB, but I'll leave it be for now.

It's also ridiculous that big bank LOs need only be 'registered' and they can lend in all 50 states with zero testing or education requirements, whereas local lenders have incredibly arduous per state 'licensing' requirements that include education, test passing, etc. The licensing requirements are not my issue as they make sense, it's the big bank exclusion from all licensing, education, and testing requirements is what I take issue with. It's as if the big national banks convinced congress they they had no part in the Great Recession!

This part I take issue with. If it's "too big to fail," it needs to be dismantled and broken up the way "Ma Bell" was broken up. You could say "just let it fail!" but for whatever reason as a society we demonstrated we are unwilling to do that in 2009. So, since we aren't willing to let something "too big to fail," actually fail, we need to break them up before it becomes an issue. That's my personal opinion.

Rogers Smith · Answer

Indeed happy days Account Closed! Dodd-Frank has been an incredible strain on our financial system for far too long. It placed far more strain on the small and community banks than it did on the mega banks, which could spread the regulatory compliance costs over a lot more customers.

With the ultimate repeal of Dodd-Frank, we should see banks finally start lending again, which certainly helps real estate investors. Further, with the proposed dismemberment of the horrid Consumer Financial Protection Bureau, consumers will start borrowing again.

It was a dumb regulation a decade ago, and it is a dumb regulation today. Yes, happy days.

Rogers Smith · Answer

I, like many small business owners (and REIs), chose this career path for my freedom and independence. I prefer not to entrust my financial well-being to employers, and I simply do not trust government to make decisions for me. I want independence from employers and big government, not more regulations. The financial crisis was caused by government regulations forcing lenders to make home loans to people who could never have afforded the loans without the regs. And freddie and fannie obviously joined the party, leading to the ultimate (and predictable) meltdown. And both sides of the political aisle were to blame. The Federal Government was at the epicenter of the problem, and now we want the Fed to create more regulations to ensure it does not happen again? I believe that is the cliche'd definition of insanity.

Bob Okenwa · Answer

I agree with @Jeff B. If you have hundreds of millions and run a Fortune 500 conglomerate, then this is in your favor as you would want as much deregulation as possible in order to run your business with fewer or no rules or standards. Such deregulation is not in the best interest of the consumer or the little guy. Let us not forget what happened only 10 years ago when there were no rules and it was the wild west out there. Homes and jobs were lost and lives were ruined. Not saying that will happen again, but it is human nature to act with your self-interests at hand when it comes to business and maximize profit at every turn. If there were no building inspections and codes, there would be people who rehabbed houses by cutting every corner possible and spending as little as possible to maximize profit. Having rules in place keeps everyone honest.

Linda Weygant · Answer

It's almost as if they've forgotten WHY Dodd Frank was enacted in the first place.  If you benefited greatly from the last financial meltdown, then I guess I can understand why you're excited about the next one.  For the vast majority of Americans, it is a situation from which many still haven't recovered.

I'd rather have some limits on my own personal profit potential than risk that cluster again....

Mary B. · Answer

I gotta co-sign with Jeff B. on this as far as the enclosed link showed there is no benefit to the consumer, REIs not even small banks, only the trillion dollar financial institutes will breathe a sigh of relief via the CHOICE Act. Yet I'm not surprised at this move one bit....

Kudos,

Mary

Happy Days Good-bye Dodd-Frank????

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