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 weakness in the mortgage finance system at the behest of Congress and the international financial community." However, the study adds that Dodd-Frank amd Basel III- 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."