The Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted in 2010 and was intended to curb some of the excesses of the financial and mortgage lending marketplaces. A recent executive order issued by President Trump will roll back some of the protections put in place by Dodd-Frank and may allow more prospective homebuyers to obtain financing in the near future. This will allow the current steady growth in the housing market to continue and could prove beneficial to the overall state of the real estate industry.
Short-Term Increases in Sales Expected
If banks do loosen the requirements for borrowers, a surge in first-time buyers could be underway within a few weeks or months. Even with projected interest rate hikes by the Federal Reserve, the easier availability of funding will likely attract more buyers to the housing market.
Little Chance of Another Crisis
The relaxing of the restrictions included in Dodd-Frank will have far-reaching effects on the real estate industry. However, these adjustments are unlikely to result in a housing bubble and consequent bursting of that bubble. The current strength of the real estate market and the demand for affordable housing will provide a buffer zone against a crash in prices and a surplus of foreclosure properties in the real estate industry.
Brighter Prospects Ahead
Increased availability of mortgage funds will make it easier for families to buy their first homes and will allow for greater refinancing opportunities for existing homeowners. This is likely to increase demand for a wide range of real estate services across the U.S.
Our knowledgeable team at Lakeside Title Company can provide support for real estate agents, lenders, borrowers and construction firms in managing title issues and ensuring the fastest trouble-free closings in Maryland, northern Virginia, southern Pennsylvania and the District of Columbia. To learn more about our settlement services, call our offices at 410-992-1070. We look forward to the chance to serve you.