Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

“Dodd-Frank Could Derail Housing Recovery”

I continue to preach or at least it feels like preaching, that the sooner we repeal Dodd-Frank, the sooner we stop harming the consumer.

Forget about all of us in business, every business, but in the short and long term, the consumer continues to be harmed.

 Dodd-Frank could derail housing recovery

Dodd-Frank: Could New Rules Derail the Housing Recovery?

By: RESMedia


The pending rulemakings for the Qualified Mortgage and Qualified Residential Mortgage mandated by the Dodd-Frank Act, and the Federal Reserve’s recently proposed Basel III international capital standards, have the potential to severely tighten an already rigid credit market, as well as reduce mortgage provider choice. These key pieces of unfinished business from the Dodd-Frank Act are leaving industry professionals unclear on mortgage origination requirements, and could lead to unavoidably higher costs for homebuyers. In fact, according to Ken Trepeta, director of the Real Estate Services for the National Association of REALTORS®, the “trifecta” of QM, QRM and Basel III could very well be a knock-out punch to housing finance if the correct standards are not implemented.

“It is unfortunate that four years since the Fannie and Freddie conservatorships and over two years since Dodd-Frank, we still do not have a ‘QM’ or qualified mortgage definition to define permissible lending in this country, and from my perspective an equally important ‘QRM’ or qualified residential mortgage defining a high quality mortgage for securitization that would be exempt from risk retention. What we need are clear, transparent, understandable rules of the road that investors, lenders and consumers can abide by and depend upon,” says Trepeta.

This critical topic will be the focus of a special keynote presentation by Trepeta at RISMedia’s Real Estate CEO Exchange: “The Dodd-Frank Act – Could New Rules Derail the Housing Recovery?” Citi, a Diamond Level Sponsor of the CEO Exchange, is also sponsoring this special informational session focusing on the impact of the Dodd-Frank Act on real estate brokerages.

The session is taking place on Thursday, Sept. 6, from 11:00 a.m. – 12:00 p.m., at the Yale Club in New York City and is open to all event attendees. The CEO Exchange opens on Wednesday, Sept. 5, at 2 p.m.

During this important update for the nation’s top brokers in attendance at the CEO Exchange, Trepeta will discuss the impact of regulatory uncertainty on affordable mortgage lending in the U.S., updating industry leaders in order to help ensure that the critical rules surrounding QM, QRM and Basel III are thoughtfully constructed and facilitate access to safe, affordable mortgage credit, and move the market further along on its path to full recovery.

“We currently face a very tight lending environment,” says Trepeta. “These three rules all have the potential to seriously affect future lending. It is critical that regulators get these rules right. Not just for future homebuyers and homeowners, but for the economy in general.”

Trepeta has been director of Real Estate Services for the National Association of Realtors® since June of 2007. In this role he covers the broader real estate industry for NAR on the legislative and regulatory front and acts as liaison to senior executives at large real estate firms. Prior to this, Trepeta was the regulatory policy representative for NAR handling regulatory and industry relations on issues such as RESPA and federal housing policy including FHA. From 2005 to April 2006, Trepeta served as vice president for Government Relations at JP Morgan Chase where he covered tax policy, housing and mortgage issues, and legal reform. From 2002 to 2005, Trepeta was vice president for Government Relations at the Financial Services Forum where he led successful efforts to change the tax code with regard to capital gains and dividends and reform the nation’s class action laws.

Designed specifically for a select group of broker/owners, brand executives and real estate leaders, RISMedia’s Real Estate CEO Exchange is by exclusive invite only. Being held September 5 & 6 at the prestigious Yale Club in New York City, the event will welcome more than 100 of the most powerful and successful real estate brokerage leaders who hail from franchise brands and independent real estate firms located across the nation. These leaders will come together for this day-and-a-half-long event to exchange ideas and strategies to better meet the needs of today’s sophisticated consumer. At press time, these executives collectively employ 75,000-plus sales associates and are responsible for more than 400,000 transactions in 2011, representing approximately $125 billion in closed business.


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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294


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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.


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Richard and Beth Witt
Long Island Cash Home Buyer - Massapequa, NY
Long Island Cash Home Buyer 516-330-6940

I agree that Dood-Frank has done and continues to do great harm to the consumer... my problem is that I'm not sure how to stop it...  It's all in God's hands and I need to remember that all things work together for good to those that believe.... 

Yikes!!!  Have a Happy Day

Aug 09, 2012 11:06 PM #1
Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

Good morning Joe. AMazing how we all agree Dodd-Frank is a train wreck yet nothing seems to derail it. Sure seems like the Governments idea of streamlining is to build as many road blocks to recovery they can.

Aug 09, 2012 11:43 PM #2
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Joe, How some of these things passed through Congress truly amazes me and makes me mad at the same time. They are idiots up there that are just doing the good ol' boy way of doing business and they don't care about the people.

Aug 10, 2012 01:00 AM #3
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Joe, I agree with you and the others who have left comments. We are all so frustrated with our leadership. Thanks for sharing today.

Aug 10, 2012 06:53 AM #4
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