Scrapping down payment requirement has undermined Dodd-Frank: editorial

Regulators’ decision to remove a down payment requirement from the definition of a qualified residential mortgage — mortgages that banks will be able to sell without retaining risk — has eliminated the Dodd-Frank financial reform law’s primary means of guarding against a future housing meltdown, The Washington Post argues in an editorial.

The decision also reflects the “discouraging” degree of influence that the housing lobby wields over government officials, the newspaper said.

Source: The Washington Post