In a post today from CNBC titled, “US risks becoming a nation of renters” they discuss a comment made to them by former Wells Fargo CEO Richard Kovacevich that “the United States is at risk of becoming a nation of renters because of the ‘totally unnecessary’ constraints that continue to prevent lenders from giving out mortgages.” He then points to two causes: Dodd-Frank financial overhaul act and the need to loosen restrictions on banks to allow them to buy back faulty loans from Freddy Mac and Fannie Mae.
Of course new regulations had to be put in place – we all heard ridiculous stories about housekeepers making $20/hour buying $450,000 homes financed at 100% of their value. That was a bit crazy. However, in the last five years have you tried to get a mortgage? It’s quite a bit different that the boom-times of 2007. I just had one of my homes refinanced at the end of 2013 and it took us about 4 months to complete (I blame my bank for at least one of those months). It was a painful process of appraisals, documents, certifying the documents, and much more.
Where is the middle-ground? Is Dodd-Frank too much? Are we really becoming a nation of renters?