ARE WE ON THE RIGHT TRACK FOR HOUSING RECOVERY?
I just read a Wall Street Journal article by Victoria McGrane. It adds fuel to the fire when I think about Washington and its ability to have a positive impact on housing recovery.
Wall Street, Banks Press to Shape Dodd-Frank Rules
In it she states:
"The law, known as Dodd-Frank, was adopted nine months ago but banks, credit unions, investment firms and their trade groups now are trying to shape how it is put into practice. The documents show financial-industry lobbyists are spending time with regulators, who are writing hundreds of rules to carry out the law, while pushing Congress to roll-back certain provisions, especially new limits on debit-card fees."
"The industry's first-quarter lobbying tally is its second-highest ever, according to an analysis of data provided by the Center for Responsive Politics. The 26 entities spent slightly more -$27.3 million-between April and June last year, when Dodd-Frank activity on Capitol Hill was most intense."
Call me crazy, but when a law is adopted due to failures on the part of banks, credit unions, investment firms and trade groups - then is it logical they should be a big force in implementation?
Further, is it not a bit mind boggling that they are writing HUNDREDS of rules to carry out the law.
The housing collapse and subsequently the recession was due to laws in place not being followed, so do we need hundreds more?
I know our industry had a couple of lawsuits that were declined regarding loan officer income. I know the appraisal industry has been brought to its knees. I know the housing recovery is a long way off. Many of the rules and laws are only a hindrance to recovery. It seems all this effort on the part of Washington now firmly embeds the biggest lobbyists and is "shutting the barn door after the horse has escaped".
Will Washington return to a common sense approach to the housing market?
Isn't it frustrating that the biggest banks are essentially helping write the rules?
A part of me has to wonder with the failure of policies to help housing recovery, where will we be when the bleeding stops?
We have lost many good appraisers, loan officers and Realtors. It reminds me of an article I saw this morning that the great news is rates are low, prices are low - the bad news most people cannot have a mortgage. I've long held the opinion that housing may lead us into a recession, but housing always leads us out. We've never had so many roadblocks on the way out.
