Posted June 3, 2018 in Real Estate Trends
Not many of us are caring about “Frank” or Dodd-Frank; however, the new legislation known as the Crapo bill named after Senator Mike Crapo of Idaho, which rolls back the Dodd-Frank legislation gives a little more breathing room to banks providing mortgages and gives more room for approvals in my opinion.
The rollback of the post-crisis financial regulations that were Dodd-Frank could have some positive impacts on those seeking mortgages. The rollback basically lifts the threshold for stricter supervision of banks from $50 billion in assets to $250 billion. This capital relief for banks could translate into different scenarios for the consumer depending on how comfortable everyone involved is feeling since the 2008 crisis that brought Dodd-Frank to the forefront.
The 2010 Dodd-Frank still stands in regard to emergency government powers as well as the Consumer Financial Protection Bureau. The rules on debit-card fees remain, but mortgage underwriting gets relaxed by this bipartisan effort known as Crapo.
While there is worry that it will bring some risk to the economy, I believe it is definitely a major step to help lending. Bipartisan supporters believe that this legislation will help smaller, community banks as it removes cumbersome regulations making it easier to loan monies. The deregulation could create an interest in some lending institutions to merge together; however, the bill allows some breathing room in regards to assets required to be held by banks.
Once again, I believe it is left to the consumer to choose where to put his or her interests in choosing a mortgage.
Ultimately lending institutions involved will continue to operate as usual without much visibility to the person working to gain a mortgage. I still believe that we are in a time when the mortgage process is best when it’s a person to person process that is personalized. While so much of the application process can be accomplished online and through technology, the bottom line still comes down to the person working to get the application approved with underwriting and the company he or she represents.
I am complimented when people name me in working to get their mortgage approved. I believe that’s the model that Peak Mortgage seeks to provide. It’s a model I believe and support in getting to YES!
We lend where we live,
Mortgage Advisor • MLO# 229675 • Peakmtgnw.com
P.S. Readers – Thank you for continuing to email me at MPattullo@peakmtg.com, I appreciate it!