Dodd-Frank – CHOICE Act

Dodd-Frank took years to formulate and pass into law; and then it took years for the mortgage industry to figure everything out. Just as the mortgage industry has settled in to Dodd-Frank, Republicans want to replace it! The replacement Republicans have come up with is the Financial CHOICE Act which the Democrats have nicknamed the WRONG Choice Act.

Dodd Frank

What Is The Financial Choice Act:

It’s a bill that was introduced to Congress in 2017 that would roll back many of the financial reforms put in place by The Dodd-Frank legislation in 2010 (source). It passed the House in 2017 and it currently sits in the Senate (as of 2020). The legislation gives the President powers to fire directs of the Federal Housing Finance Agency (this agency runs Fannie Mae, Freddie Mac and the Consumer Financial Protection Bureau – aka CFPB). This legislation would block the CFPB from regulating pay day loan lenders and would further water down their regulatory power to protect the consumers. The bill also includes certain regulations on the Fed using what’s known as the Taylor Rule.


Democrats on the House Financial Services Committee held a hearing and not surprising no Republicans showed up-gridlock at its finest. A Dodd-Frank replacement received new life with the election of Donald Trump as some argue Dodd-Frank prevents lenders from lending. Other’s argue by saying that simply is not true. The truth is, according to supporters of Dodd-Frank, is that lenders are able to lend and just look at the rise of personal debt since Dodd-Frank enactment as proof. House Democrats are against a repeal and want the Republicans to join them in reforming the current law.

What Dodd-Frank Isn’t and Is:

To be clear; Dodd-Frank does not determine how low mortgage interest rates can go or how high they can go. Dodd-Frank is a post-2008 financial crisis law that dictates various things including proper lending guidelines and disclosures. While it does require residential mortgage lenders to justify and document the mortgages they provide; some people are under the wrong impression that Dodd-Frank has a direct influence over mortgage rates.

Maxinne Waters:

Representative Maxine Waters is a vocal critic of the repeal and she said at the hearing:  “We’ve asked for this second hearing to hear from experts and well-informed witnesses who know, understand and appreciate the importance of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and who can point out the dangers of the Wrong Choice Act,” Rep. Maxine Waters (D-Calif.) said. “Now, even with this additional hearing, we cannot fully cover all of the many ways this bad bill would hurt hardworking Americans. We would need dozens more hearings to do that. But with this slate of outstanding experts here today, we will have the opportunity to educate the public about some of the harmful repercussions of the Wrong Choice Act.”


Republican’s are falsely claiming that Dodd-Frank protects the banks and not the consumers which simply is not true. Dodd-Frank and the CFPB have brought about significant improvements when it comes to protecting borrower’s looking for a new mortgage. The CFPB has done a decent job in going after mortgage companies for false advertising and illegal kick backs which also helps consumers by filtering out the “bad apples” in the mortgage industry. While not perfect; Dodd-Frank does a good job however it does need to be reformed to ensure that it works for those that it’s supposed to protect and doesn’t impede their ability to obtain financing.

Current Mortgage Rates:

If you are looking for current mortgage rates we have you covered on our current mortgage rates page. We’ll not only keep you up-to-date with where mortgage rates are at but also cover important bond market information and general economic news that may influence mortgage rates.

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About Loan Officer Kevin O'Connor

About Loan Officer Kevin O'Connor

He is the founder and main contributor of He has over 16 years of experience as a Mortgage Loan Originator (MLO) and is a fully licensed with the state of California and the Nationwide Mortgage Licensing System (NMLS). He has a top rating with the Better Business Bureau and Zillow. He continually delivers the results homeowners are looking for; low rates, fast closings and exceptional service: "Helping Homeowners Achieve Their Dreams"  CA DRE #01499872 and NMLS # 247447