Following the financial crisis of 2008, the Obama administration passed the Dodd-Frank Wall Street and Consumer Protection Act which, in an effort to clean up the mortgage industry, imposed stricter regulations around lending. The legislation completely changed the mortgage industry and made it much more challenging to secure a loan.
But now that the housing industry has recovered, new legislation has just passed that’s meant to loosen up some of the restrictions put into place under the Dodd-Frank Wall Street and Consumer Protection Act and make it easier for more people to get the mortgages they need to become homeowners.
According to a recent article from Realtor.com, the new legislation could be a complete game-changer for non-traditional borrowers who have struggled to obtain a mortgage. The legislation loosens regulations on small-to-mid-sized banks, allowing them to offer more loans to potential buyers—including those who have had credit issues or don’t have enough viable credit to get a loan today.
The TakeawayIf you’ve struggled to secure a mortgage in recent years, this new legislation could completely shift the market and enable you to get the funding you need to become a homeowner.