The financial world we inhabit today is vastly different from the one we lived in before the financial meltdown of 2008. The marketplace has narrowed extensively due to so many business failures. It has also become extremely difficult to borrow money. Anyone who has tried to obtain a bank loan to start a new business or to get a line of credit for their existing business knows this first-hand. It is not just the business world that has been affected. These same hurdles exist in the home mortgage world as well. Why is this?
The simple answer is the Dodd-Frank Wall Street Reform and Consumer Protection Act. This compendium of regulations was passed in 2010 by the Obama Administration as an attempt to prevent the recurrence of events that led to the financial crisis. Essentially what Dodd-Frank did was increase the regulations of our financial institutions so as to lower the risk of any sort of predatory lending practices that would harm consumers. Although this act was born with good intention, it has had a great deal of negative impact on our financial world.