After more than three years of work, regulators say are finally wrapping up a key piece of the 2010 Dodd-Frank financial law aimed at tightening mortgage-lending standards.
In a Senate Banking Committee hearing on Tuesday, several officials didn’t expressly commit to when these mortgage lending rules – originally proposed in spring 2011 – would be finished. But several said they hoped the arduous process of hashing out the rule among six agencies could be complete by the end of 2014.
As the Wall Street Journal reported in June, the standard is much looser than what was first floated in 2011.
At the time, policy makers said borrowers would have to put 20% down to get a loan or lenders would have to retain 5% of a loan’s risk once it was packaged and sold to investors.