A Federal Reserve study has shown that rules passed as part of the Dodd Frank regulation, which was intended to ensure that house buyers could afford their mortgage repayments, has not curtailed the ability to buy a home. The study, conducted by researchers at Columbia University, found that in areas where there were no restrictions on how much people can borrow for home purchases, prices rose faster than they would have otherwise. Banks may also have adjusted to the new rules prior to implementation.
A Federal Reserve study has shown that rules passed as part of the Dodd Frank regulation, which was intended to ensure that house buyers could afford their mortgage repayments, has not curtailed the ability to buy a home. The study suggested that the new rules had little effect because lenders had already tightened standards after the 2008 financial crisis. Banks may also have adjusted to the new rules prior to implementation.