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Dodd-Frank to blame for slow recovery – Hensarling

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Mortgage Professional America | 12 Jul 2016, 03:01 PM Agree 0
The chairman of the House Financial Services Committee says the Dodd-Frank Act is ‘one of the principal reasons’ recovery has been slow in the wake of the economic meltdown
  • Kevin in SF | | 12 Jul 2016, 03:27 PM Agree 0
    Like Duh! How many years has this taken him to figure this out?
  • Kim-AR | | 12 Jul 2016, 04:11 PM Agree 0
    Government officials are obviously slow on the uptake. Really, it took this long to point the bony finger of blame? It was obvious to all of us six plus years ago. Geez
  • chris co | | 12 Jul 2016, 04:18 PM Agree 0
    Is anyone honestly going to sayt the economy is worse now than it was 6 years ago? Wow, where did you get your education?
  • k | | 12 Jul 2016, 04:22 PM Agree 0
    Amen, this phony attempt to look like they care has buried homeowners. The very rules they created are killing the mortgage industry. It's easier for a Chinese national to get a mortgage here then Americans. #1 foreign buyer of US real estate. When Obama first announced the big modification scams, people stopped making mortgage payments in record numbers. He added immensely to the problem.
  • Denny B | | 12 Jul 2016, 04:31 PM Agree 0
    I have never heard a sillier excuse for the sluggish economy than this absurd piece of "Hensarnomics". The Republicans need to take a good look in the mirror and see if they wish to buy into this claptrap. Want a repeat of the crash of '08? Simply implement this so called piece of Republican legislation. Pure BS political posturing.
  • Johnny L | | 12 Jul 2016, 05:38 PM Agree 0
    I hope he was dressed up in a Capt. Obvious outfit when he made these comments...
  • Ed | | 12 Jul 2016, 05:50 PM Agree 0
    Specifically in the mortgage guess is that every mortgage has about $2,000-3,000 in fees baked in due to CFPB regulations. In an attempt to protect unknowing consumers, the unintended consequence has been to jack up the cost of obtaining a mortgage. Ironically, Elizabeth Warren tried to cut the legs from under the mortgage broker and most brokers are making more per mortgage now that prior to Dodd Frank.
  • NoSpinJustFacts | | 12 Jul 2016, 06:05 PM Agree 0
    Please, if you believe in Big Government little citizens then Dodd-Frank fits right into your philosophy. Anyone that has been in the mortgage profession for the past 30 years can provide a clear road map that caused the housing crisis and financial meltdown. It was the creation of the "Under-served" for homeownership. This was Big Governments code for consumers that had bad credit and no money. The Big Government Bureaucrats then advised Wall Street to open the no doc mortgages to these folks (historically and successfully used for high equity or high credit scored folks). The Big Government Bureaucrats than advised the rating agencies to put highly ratings on the newly created garbage mortgages. Then the Big Government Bureaucrats went after the depository banks and mortgage banks with threats of ECOA violations if they did not offer these mortgages to the under-served. This lead to these buyers bidding unrealistic prices as they had no concept of managing debt. This pulled in the speculative investors with little to no skin in the game bidding up prices. The responsible consumers stopped buying houses once the prices were no longer in a range they could afford. 90% of homeowners continued to make their house payments.

    So Denny B, it was not a lack of regulation that caused the housing crisis. It was Big Government's creation of "under-served" and their regulatory bureaucrats squeezing and threatening the same players that had successfully served the housing market for 70 years prior to Big Government creation of "under-served" (code for bad credit no money) class of homeownership.
  • Kas | | 12 Jul 2016, 06:14 PM Agree 0
    Put Demo and Rep side off too the side: it is accurate.. It has done nothing to enhance clarity And the consumer's broker can not effectively shop the best rate or program because of the timeframes, giving 3 or more scenarios and list goes on .

    Remember how fun it used to be when we really were able to shop thoroughly around with various lenders and we were our clients heroes--- we were actually able to deliver the best possible we could to the consumers. It was fun to meet and even exceed our customers expectations !

    Thanks to ..... Lenders want the cookie cutter no fear of the BIG DOOD-FRANK

    YOU KNOW MATH DOES NOT LIE REGARDLESS 2 2=4 regardless if you spread over 4 pages or 1 page.

    What an easy paycheck!!!to just sit around chatting up poor ideas
  • Future | | 13 Jul 2016, 09:56 AM Agree 0
    This is total BS. Dodd-Frank pulled the reigns in on the industry. And it was much needed. It's looking like the same old Wild West again with undue influence. we go again. There will be another meltdown.
  • AF | | 13 Jul 2016, 12:26 PM Agree 0
    Hate to break it to you but Wall Street runs big government NOT the other way around. The last housing mess was created after Wall Street bubble machine ran up and crashed the dot com bubble. The fed dropped the discount rate to 1% for 18 months causing the housing bubble. We've been at 0.00-0.500 for eight years now, what do you expect to happen next. This is NOT another bubble, it's the same bubble on super-steroids! The only thing is that now they've spread this cancer world wide, with Japan and Europe now in negative rate territory, and in all asset classes like commodities, real estate, stocks, bonds, art, exotic cars, etc... When this bubble eventually pops, and if history has taught us anything is that it will pop, it's going to make 2008 look like a picnic! So Dems can blame the Reps and vice versa, but the truth is they all work for Wall Street. They made trillions on this boom and bust strategy while holding the global economy hostage. The question becomes what happens now that the Central banks are out of bullets? Scary!
  • Russ in PA | | 14 Jul 2016, 10:01 AM Agree 0
    There are few politicians that have a true remedy for the US economy. Most are more of the same, with a lean towards their particular agenda; either social welfare or corporate welfare.

    To NoSpinJustFacts, you got it backwards when you say "The Big Government Bureaucrats then advised Wall Street." Historically, it is the economic elite who tell the power elite, what to impose on the balance of the population.
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