Senator concerned about new mortgage rules

New regulations currently being developed could make it more difficult for some to get home loans, according to Sen. Kay Hagan (D., N.C.).

February 04, 2011

 

New regulations currently being developed could make it more difficult for some to get home loans, according to Sen. Kay Hagan (D., N.C.).

The Wall Street Journal reported that Hagan is concerned regulators may not be lenient enough in defining which loans are defined as less risky. Those loans would be exempt from the requirements of the Dodd-Frank financial overhaul, which said banks must retain 5% of the risk of a loan if it is packaged into a security and sold to investors.

Recently, some in the banking industry have been concerned that regulators may be too strict in their definition of less risky loans. If that definition requires a high down payment, the mortgage insurance industry could be harmed.

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