1,243,859 Hours Lost Complying with Dodd-Frank

By Gloria Taylor

$1.7 Billion. That’s how much the latest 9 rules stemming from Dodd-Frank will cost according to the American Action Forum. If the sheer waste of dollars isn’t enough, these rules alone have also sent 1,243,859 hours down the drain, wasted away on paperwork. Again, only nine rules. Dodd-Frank in its entirety is estimated to have cost $36 billion along with 73 million of hours diverted from productivity to compliance.

Businesses could be hiring new employees and banks providing more loans, but instead they are stuck hiring compliance officers or filling out paperwork. Dodd-Frank is one of the reasons community banks have been hung out to dry, small business can’t access they capital they need, and the U.S. has experienced the slowest economic recovery since WWII.

Regulatory costs alone don’t capture all the havoc Dodd-Frank wreaks. At the heart of Dodd-Frank’s paternalistic approach is the assumption that deregulation led to the financial crisis. Heritage Foundation scholar Norbert Michel explains that there was no reduction in financial regulations prior to the crisis. If anything federal policy caused the meltdown. Affordable housing goals that failed to measurably increase home ownership created the perfect storm for lower lending standards filling markets with high-risk mortgages. Cue the crisis.

The institutions that helped create the crisis, Fannie Mae and Freddie Mac, were bailed out while small business and consumers, left in the wake of endless, misguided regulations, are now saddled with higher prices and less choice.

President-elect Trump and his nominee for Secretary of the Treasury expressed a willingness to tackle the problem and Congress has plenty of tools to deal with Dodd-Frank. Under the Congressional Review Act (CRA), Congress can one by one halt the implementation of the latest 9 costly rules to prevent any last minute damage from the Obama administration. On top of that, the House has recently voted to expand the power of CRA to block multiple rules at once as opposed to one at a time.

Not only can new rules be blocked, but Rep. Jeb Hensarling (R-TX) has already laid the groundwork to repeal Dodd-Frank through the Financial Choice Act. Now with a unified Republican government, the Choice Act can serve as a good model of what Congress can accomplish to take back power from unaccountable agencies, reduce regulations, and empower consumers to make their own decisions. Dodd-Frank has caused too much harm to the financial sector and crippled businesses and the housing market. No more excuses from Congress. Stop any more rule making and repeal Dodd-Frank.


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Blueprint for Pro-Growth Tax Reform Released

Last Friday, House Republicans released a blueprint for comprehensive tax reform as part of the GOP’s larger campaign reform agenda named “A Better Way.” While the provisions offered in this comprehensive tax reform proposal would reduce taxes and help jumpstart our economy, campaign ideas aren’t enough. House Republicans should introduce…

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Heritage Action Praises Tax Reform Task Force

Washington — Today, the House Republican’s tax reform task force released its policy recommendations. Last December, Speaker Paul D. Ryan promised to “show what we would do, what our ideal policy would be.” Heritage Action released the following statement from chief executive officer Michael A. Needham: “House Republicans’ new tax plans…

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Real Estate Industry Groups Call on Congress to Enact GSE Reform

Last week, a coalition of real estate related groups including the American Bankers Association, the Mortgage Bankers Association, the National Association of Home Builders, the National Association of Realtors, and the National Housing Conference sent a letter to Federal Housing Finance Agency Director Mel Watt asking the FHFA to let…

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House Republicans Outline Proposal to Fight President Obama’s Water and Agriculture Regulations

Last Tuesday, a task force of House Republicans released a regulatory policy agenda outlining what policies Congress should enact to help jumpstart the economy. Entitled “A Better Way,” this task force agenda offers significant policy proposals that would improve our economy by protecting privacy rights and empowering  businesses to succeed.…

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House Republicans Hope to Reduce Financial Regulations, Reform Dodd-Frank

This Tuesday, a task force of House Republicans released a regulatory policy agenda outlining what policies Congress should enact to help jumpstart the economy. Entitled “A Better Way,” this task force agenda offers significant policy proposals that would improve our economy by empowering real estate professionals to succeed. Good ideas…

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NAR Meets with CFPB, Sends Letter Asking for TRID Guidance

Earlier this month, the National Association of Realtors (NAR) sent a letter to the Consumer Financial Protection Bureau (CFPB) asking for additional guidance on the controversial TILA-RESPA Integrated Disclosure Rule, commonly known as TRID or “Know Before You Owe.” As the NAR notes in its letter, the “Know Before You…

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Financial CHOICE Act Represents Major First Step to Repeal Dodd-Frank

Guest Blog: Authored by Heritage Foundation financial regulation expert Norbert Michel. The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act is among the most inappropriately named laws ever enacted in the U.S. It neither reformed Wall Street nor protected consumers, and it imposed massive new regulations on banks far away from Wall…

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Heritage Action Praises Hensarling’s Dodd-Frank Reform

Press Release: Washington — Today, House Financial Services Chairman Jeb Hensarling (R-TX) 81% released his proposal to overhaul the Dodd–Frank Wall Street Reform and Consumer Protection Act. Heritage Action released the following statement from Chief Executive Officer Michael A. Needham: “Chairman Hensarling deserves credit for shifting the conversation surrounding Dodd-Frank from…

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How the FHA and NAR Work Together to Hurt the Little Guy

According to the National Association of Realtors (NAR), pending home sales have reached their highest level in over ten years. At the same time, the real estate marketplace Zillow is reporting that home prices are rising faster than anyone expected mainly due to a lack of housing supply. While the…

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Average Size of Purchase Loan Application at Record High

According to the Mortgage Bankers Association (MBA), the increase in average loan sizes for purchased mortgage applications is outpacing the recovery in housing prices. The MBA’s weekly application survey reported that the average purchase loan size reached $307,700 - the highest loan size in the history of the survey. The…

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Dodd-Frank Replacement Bill to be Unveiled June 7th

Representative Jeb Hensarling (R-TX), chairman of the House Financial Services Committee, will introduce new legislation to replace the 2010 Dodd-Frank Act on June 7th. Although specific details of the bill are unknown, Chairman Hensarling stated earlier this month on Capitol Hill that the “most important feature of our plan, the…

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Dodd-Frank Drives Home Prices Up, Suppresses Affordable New Home Construction

Economists are starting to acknowledge that the lack of supply in the housing market, especially the supply of affordable single family homes, is one of the main drivers for the rise in home prices observed in early 2016. While a number of variables can cause reductions in housing supply, repercussions…

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Government Regulation Driving Up the Cost of New Home Construction

A new study conducted by the National Association of Home Builders (NAHB) concludes that the average cost for home builders to comply with local, state, and federal regulation has risen by nearly 30%, increasing from $65,224 in 2011 to $84,671 this past March. These regulatory costs include everything from impact…

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