Congress repeals Dodd-Frank: Are we back to super easy housing loans?

Subprime loans were already a thing these days, this mught be icing. As long as we don’t bail them out, natural selection will take care of this

Of course we will bail them out.

Then prepare your cash in 2yr timefrMe to buy some cheap banking stocks

The same bubble won’t get inflated twice in a row. You may need to wait 30 years at least. People are still waiting for the 2nd dot-com bubble. Never came.

That being said, Argentina is in trouble yet again. So there’s still hope. Sometimes people are that stupid.

Umm, read the article. Also, they didn’t repeal it. They changed some parts that apply to community banks.


Dodd-Frank increased systemic risk to the banking system by establishing a regulatory framework only the largest banks could deal with - putting smaller banks out of business and making the big banks even bigger. This latest legislation is a bipartisan attempt to undo some of the damage.

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That’s true. They didn’t repeal the whole thing. But they are freeing up community banks and smaller lenders from the strict mortgage loan standards. So they can start lending to less qualified buyers.

Dodd Frank caused more economic pain than the reason it was created . A reason the Obama slow growth and high unemployment lasted 6 years after the recession. In fact the building industry has never recovered . 2.5m starts in 2005 less than half that now.
Helped cause the worst housing shortage since WW2

Dodd Frank and Obama were a disaster… way worst than the 2009 recession

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Exactly, and those banks have so little capital that this isn’t going to have a big impact. They have to keep the loans on their books, so they’ll be limited in how many loans they can make.

I talked to a lender today. I doubt things will change.
Of course I you have $7m in cash you can get an asset loan. But why would you?

I didn’t realize how relaxed lending standards are vs 2009-2011. My credit union will go 51% DTI ratio on a jumbo loan with 18 months of reserves after closing. They do discount rent by 25% on investment properties for DTI calculations. The reserves can be in non-retirement or retirement accounts. Reserves in retirement accounts have a 50% discount applied to meet the 18 month requirement. I was honestly pretty shocked. I’m pre-qualified for way more than I’d be comfortable spending.


That’s one reason i am still laughing when people say standards are more strict now.
Even my conversation with my own mortgage person is scaring me.


They are much stricter than 2007 when you didn’t even need to document income or have reserves. You could also do interest only or reverse borrow up to 120% of the homes value. Compared to then it is much stricter. I have to provide 2 years of tax returns, 2 pay stubs, rental contract for innvesmtment property, brokerage statements, etc. None of that was required in 2007. You just had to sign your name.


Lending loosening up could provide another boost to home price. Housing boom can last another 5 years.