The GSE regulator's second attempt to stimulate the mortgage market is receiving a lukewarm reception from lenders, who remain gun-shy after being forced by Fannie and Freddie to repurchase billions of dollars in soured loans since 2008.
A regulatory report released this summer helped fuel hopes that banks were finally beginning to loosen up on making mortgage loans. But since then strategists say there is no evidence that an easing of credit standards is taking place.
Politicians must acknowledge the unintentionally harmful consequences of the Dodd-Frank Act, while bankers need to accept that the financial system has deficiencies and act to remedy the problems under their control.
Regulators will unveil a long-awaited final rule next week that requires lenders to retain some of the risk for loans they securitize in the secondary market, a critical part of the Dodd-Frank Act that the agencies have struggled to implement.
As Dodd-Frank's impact continues to be felt far beyond banks' compliance departments, American Banker is your eyes and ears. In addition to our award-winning coverage, we now also scour a range of resources to aggregate even more of the news you need on this vital topic.