Dodd-Frank Act Rollback

The Dodd-Frank Act was enacted to keep banks and mortgage lenders from writing “liar loans.”  Liar Loans were a big factor in the breakdown of the economy in 2008. Now, just 10 years later with Donald Trump as president of the United States, on Thursday, May 24th, 2018, Donald Trump delivered on one of his campaign promises, which was a Dodd-Frank Act rollback.  Although I haven’t seen exactly what he changed, the news reports are giving the impression that lenders will have more power to trade and sell loans like they did prior to the collapse of the banking industry.

Dodd-Frank Act Rollback

I will be looking for more information on the “roll-back” that was signed by President Trump on Thursday, to find out exactly what was changed in the Dodd-Frank Act. Here’s what I have learned so far from the news:

The measure eases restrictions on all but the largest banks. It raises the threshold to $250 billion from $50 billion under which banks are deemed too important to the financial system to fail. Those institutions also would not have to undergo stress tests or submit so-called living wills, both safety valves designed to plan for financial disaster.  – CNBC

The good news is, as per President Trump, the addendum “puts community banks back into the mortgage lending business again.”  – However; I don’t think the community banks were ever out of the mortgage lending business.  I mean, I recently got a mortgage loan from my community bank.

I’ll be looking for information to see if the roll-back makes it easier for private lenders to help their friends out with a mortgage loan. Private money is a loan from an individual to another individual or small company to assist them in buying a house.


Grace started Grateful Nuts Homes in 2010. Grateful for the opportunities that America provides even when times are rough, and believes in being nuts when those times are tough. She's nuts about helping people. She volunteers for several non-profit organizations, including Rotary, and the Eugene Opera, and Habitat for Humanity.

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