New Report Predicts 20% Fewer Mortgages In 2013

Posted by Orb Staff on October 29, 2012 No Comments
Categories : Residential Mortgage

12657_12552_0aa96pic New Report Predicts 20% Fewer Mortgages In 2013 Next year could see 20% fewer residential mortgages being originated, according to a new study issued by the American Action Forum, a Washington, D.C.-based think tank.

The study states that the Dodd-Frank Act and the Basel III accords can be lauded as ‘well-intended regulations proposed to shore up weaknesses in the mortgage finance system at the behest of Congress and the international financial community.’ However, the study adds that Dodd-Frank and Basel IIIÂ – along with the anticipated implementation of the qualified mortgage and qualified residential mortgage guidelines – could create more harm than healing.

‘The study finds that the Dodd-Frank regulations and Basel III capital standards would not only hinder qualified borrowers from access to loans, but also result in 20% fewer loans than otherwise would be made,’ says Douglas Holtz-Eakin, president of the American Action Forum and co-author of the report. ‘Other impacts include up to a million fewer housing starts over the next three years, 3.9 million fewer jobs and a loss of 1.1 percentage points of GDP growth.’

The full report is available online.

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