Pending mortgage regulations could lock today’s tight lending standards in place and result in nearly 20% fewer mortgages being issued in the coming years, restraining home sales and construction, according to a new study.
The report from the American Action Forum, a center-right think tank, provides an estimate of the potential impact of three important mortgage regulations set to take effect next year:
* Higher bank capital standards under the Basel III agreement
* The “qualified mortgage” rule regulating ability-to-repay standards, which is part of the Dodd-Frank financial-overhaul law
* The “qualified residential mortgage” rule setting standards governing loans that are issued as securities, also part of Dodd-Frank.
Read more...Study: New Mortgage Rules Could Shrink Lending by 20% - Developments - WSJ
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