The Frank-Dodd Act – Mortgage Lending Today
In 2010, a horrifying year for the economy and real estate market President Obama implemented the Frank-Dodd act. An action brought on to combat and end predatory lending like negative-amortization mortgages, sub-prime loans and giving loans to buyers that weren’t fiscally fit for the size of mortgages issues.
It was a terrible time back then, in the beginning unknowing consumers who were perhaps not the best money managers were ecstatic to be given a loan for a home, only to lose it later to foreclosure over cash flow issues, job cut backs and a geriatric economy. This in turn only further damaged people’s credit.
In the end, nearly 8 million U.S homes fell into foreclosure, home builders saw their…