Banks and non-banks, reverse mortgage lenders included, have been bearing the burden of the Dodd-Frank Wall Street Reform and Consumer Protection Act since it was enacted in 2010.
With the onset of the Consumer Financial Protection Bureau, the rollout of new mortgage rules and disclosures, and additional new requirements across the lending spectrum, companies have been feeling the costs associated with the massive legislation passed under President Obama—not the least of which includes spending on compliance.
But how much, exactly, will Dodd-Frank Cost? It could amount to as much as $895 billion in lost GDP over 10 years, according to a new estimate.
“The consequences are significant,” writes Douglas Holz-Eakin, President of the American Action Forum, in a summary of a paper published this week in which the policy advisor analyzes the costs of Dodd-Frank over the 10-year period from 2016 to 2025. The costs in lost GDP, he finds, amount to roughly $3,346 per working-age person.
The computation is “subject to large uncertainties, but the order of magnitude is instructive,” he says.
Written by Elizabeth Ecker
