Regulations keep families from buying homes
Regulators aim to simplify the mortgage process
According to Bloomberg, regulators are in the process of trying to simplify the mortgage market to give families the option of owning a home.
Bloomberg News reports that by the end of August, regulators will release a 'softer' version of rules overseeing how banks finance mortgages. The Dodd-Frank financial reform bill tasked regulators with writing rules that would force Wall Street to keep some skin in the game when they bundle mortgages into securities. Rather than letting banks pass all of the risk on to investors who buy the securities, the bill said banks must keep 5 percent of the deals on their own books.