The recent housing crisis was in very large part caused by our government and quasi-governmental agencies (Fannie Mae and Freddie Mac) creating incentives for mortgage lenders to make loans that they would not have made otherwise. I’ll be happy to discuss this, but in my opinion it’s incontrovertible.
In response to the crisis it created, our government has introduced many “solutions” — mostly under the auspices of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Restrictions in that act have undoubtedly made the housing recovery longer and harder than it needed to be, by introducing signficant confusion, “compliance” delays, and excessive mortgage underwriting conservatism. It is a fact that extremely well qualified borrowers are being denied mortgage loans as a direct result of Dodd-Frank, and the closing process is more complicated and takes longer than necessary.
But stand by …. More help is on the way in 2013. This article from the National Association of REALTORS® is a quick summary: CFPB Unveils Ambitious Strategic Plan.