In the first presidential debate, Republican presidential candidate Mitt Romney continued his fight against Dodd-Frank, noting that it still hasn’t clarified what a “qualified mortgage” is.
“Dodd-Frank correctly says we need to have qualified mortgages, and if you give a mortgage that’s not qualified, there are big penalties. Except they didn’t ever go on to define what a qualified mortgage was,” Romney said. “It’s been two years. We don’t know what a qualified mortgage is yet. So banks are reluctant to make loans, mortgages. Try and get a mortgage these days. It’s hurt the housing market because Dodd-Frank didn’t anticipate putting in place the kinds of regulations you have to have. It’s not that Dodd-Frank always was wrong with too much regulation. Sometimes they didn’t come out with a clear regulation.”
Romney has repeatedly stated that Dodd-Frank reforms are stifling the economy and has pledged to repeal the 2010 bill, which attempts to overhaul the U.S. finance system.
“Regulation is essential. You can’t have a free market work without regulation,” Romney said. “At the same time, regulation can become excessive, it can become out of date. And what’s happened with some of the legislation that’s been passed under President Obama’s term is you’ve seen some of the regulation become excessive and it has hurt the economy.