Democratic agenda supports Dodd-Frank

by Michael Mata01 Aug 2016
The Democratic Party recently released its 55-page party platform which outlined what the party planned to accomplish if Hilary Clinton becomes America’s first female president. Aside from covering a broad range of concerns, like climate change and terrorism, the party platform also gave observers a sneak peek into what Clinton’s presidency could mean for the US housing market.  

The Democratic agenda is virtually the opposite of the Republican agenda, with the Democrats planning to increase the federal government’s role in the housing market. By increasing the budget of the National Housing Trust Fund, the Democrats plans to build, preserve, and rehabilitate the homes of the poorest Americans as well as create more affordable rental units.

The Democrats also plan to increase government-sponsored social services and end housing discrimination targeting minority groups. Major initiatives include strengthening the Fair Housing Act (which protects Americans from housing discrimination based on factors such as race, religion, and disabilities); protecting sexual minorities from housing discrimination; ensuring adequate housing for migrant workers; and creating more affordable housing for Native Americans on and off reservations.

Rather significantly, the Democrats defended the controversial Dodd-Frank Wall Street Reform and Consumer Protection Act. This law was created to oversee US financial institutions after the subprime mortgage crisis plunged the world into recession.

While the Democrats say they want to stimulate the construction industry, Dodd-Frank is making it harder for builders to develop the affordable housing the nation so desperately needs by making it harder for local and regional banks to lend money to builders.  

In other words, if the Democrats want to stimulate the construction and housing industry, they’ll need to either repeal or reform Dodd-Frank.


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