Document Type
Article
Comments
This article predates the author's affiliation with Cornell Law School. It was published in The Hill (December 27, 2016) under the title: "It’s Time to Expand the Credit Box for American Homebuyers."
Abstract
The mortgage market of the early 2000s provided mortgage credit to too many people who could not make their monthly payments on the terms offered. The pendulum has now swung. Today’s market offers very few unsustainable mortgages, but it fails to provide credit to some who could afford them. That means that the credit box is not at its socially optimal size. The Consumer Financial Protection Bureau should make it a priority to review the regulatory regime for non-Qualified Mortgages in order to ensure that the functional credit box is expanded to more closely approximate the universe of borrowers who can pay their mortgage payments month in, month out. That would be good for those individual borrowers kept out of the housing market. It would also be good for society as a whole, as the financial activity of those borrowers has a multiplier effect throughout the economy.
Date of Authorship for this Version
12-2016
Keywords
United States. Consumer Financial Protection Bureau, CFPB, Mortgages, Housing finance, Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
Recommended Citation
Reiss, David J., "Expanding The Credit Box" (2016). Cornell Law Faculty Working Papers. 176.
https://scholarship.law.cornell.edu/clsops_papers/176