The Dodd–Frank Wall Street Reform and Consumer Protection Act (commonly referred to as Dodd-Frank), which was signed into law by President Barack Obama in July 2010, has brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great Depression. It made changes in the American financial regulatory environment that affect all federal financial regulatory agencies and almost every part of the nation's financial services industry.

Perhaps most significant for HFAs and their affordable homeownership programs, Dodd-Frank established the Consumer Financial Protection Bureau (CFPB), and tasked the new agency with promulgating a series of new regulations pertaining to mortgage lending. CFPB has since implemented rules governing, amongst other things, mortgage underwriting, servicing, borrower disclosures, and loan originator compensation.

NCSHA has worked to make CFPB staff and leadership aware of HFAs’ unique role in the housing finance system and to ensure that CFPB’s rules don’t hinder HFAs’ homeownership programs. In several of its rules, CFPB has recognized HFAs’ track record of responsible affordable lending and granted HFAs several special dispensations, including exempting all HFA program loans from its Ability-to-Repay/Qualified Mortgage rule. CFPB recently amended its mortgage disclosure rule to make it easier for lenders to participate in HFA down payment assistance programs.

NCSHA has also endeavored to ensure that other federal rulemakings authorized by Dodd-Frank account for HFAs critical place in the market. At NCSHA’s urging, HFA program loans were exempt from the Risk Retention rule released by six federal agencies requiring banks to retain a portion of the credit risk for every asset they securitize. This has made HFA loans, and the bonds and securities they underlie, more attractive investments for banks.

Moving forward, NCSHA will continue to advocate to ensure that federal financial regulators consider HFAs’ unique purpose and needs when drafting regulations and other rulemakings.

NCSHA Blog Posts

  • November 17, 2017

    A bipartisan group of Senators, including Banking Committee Chair Mike Crapo (R-ID), released yesterday the text of draft legislation reforming various federal financial regulations. The bill, titled the “Economic Growth, Regulatory Relief, and Consumer Protection Act,” S. 2155, contains a number of changes to federal mortgage rules and also allows Hardest Hit Fund (HHF) program grantees to use their funds for lead and asbestos removal. A section-by-section summary of the bill can be viewed here.

  • November 15, 2017

    Richard Cordray announced earlier today that he will step down as director of the Consumer Financial Protection Bureau (CFPB) by the end of this month. Cordray’s term was scheduled to end in mid-2018.

    Dodd-Frank - Resources

    • April 13, 2017

      Representative Jeb Hensarling's (R-TX) summary chart of intended changes to the CHOICE Act bill he plans to introduce in the 115th session of Congress.

    • December 12, 2016

      The National Council of State Housing Agencies (NCSHA) is a national nonprofit, nonpartisan organization created by the nation’s state Housing Finance Agencies (HFAs) to advance through advocacy and education their efforts to provide affordable housing to those who need it. NCSHA’s priorities, adopted annually by its Board of Directors after consultation with all state HFAs, set the agenda for NCSHA’s advocacy before Congress, the Administration, and the federal agencies concerned with housing, including HUD, USDA, and the Treasury, as well as its business activities.