Deregulating the Financial Industry
Remember bank bailouts, foreclosures, market crash? Well, apparently not Trump administration.
The agency also announced that it was paring back requirements for the Home Mortgage Disclosure Act, which was put in place in 1975, and the authority to make rules related to the act was transferred to the CFPB via the Dodd-Frank Act. In 2015, the bureau set out to update what is known as Regulation C, the provision that governs how information on mortgages is collected, reported, and disclosed.
Just a reminder, a big issue was toxic derivatives where mortgage ownership could not be traced to an actual issuer of the loan. As a result, a number of people in good standing got foreclosed on, and some deadbeats managed to annul their mortgages via courts.
Yes, because the actual issuer of the loans were pressured by the government to make loans to people who could not repay them, so that more diverse segments of the population could enjoy the wonderfulness of home ownership.
Government regulation of markets like that we do not need.
"Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits."http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html
"Before that time , these two government sponsored enterprises (GSEs)[Fannie Mae and Freddie Mac] had been required to buy only mortgages that institutional investors would buy--in other words, prime mortgages--but Frank and others thought these standards made it too difficult for low income borrowers to buy homes. The affordable housing law required Fannie and Freddie to meet government quotas when they bought loans from banks and other mortgage originators."https://www.theatlantic.com/busines...ent-did-cause-the-housing-crisis/249903/