The rollback of lending reform

While many people have been fixated on the on-going events surrounding Donald Trump and Kim Jun Un over the past few weeks. Some legislation enacted after the housing bust was quietly rolled back. While the new law signed by trump does not do away with all the financial reforms, it does have some significant implications for home buyers.

The reforms put into place after the financial crises were intended to put an end to some of the reckless mortgage lending that transpired leading up to the financial collapse in 2008. However some of these rules have recently been deemed too strict and have made it difficult for some people to get loans. The newly signed law aims to ease access to credit by loosening up regulations on small and medium size banks.

Here are some items that home buyers should keep in mind:

First, the loosening of underwriting rules should make mortgages more plentiful and easier for some people who could not previously get mortgage to now qualify.

Second, the reform law encourages Fannie Mae and Freddie Mac to explore alternative credit score models to help those with non-traditional credit files.

Finally, consumers are now able freeze and unfreeze their credit without charge, enabling borrowers to ensure that there are no surprises on their credit report leading up their need to obtain credit. Happy house hunting!