President Obama has ordered a complete review of all regulations to remove or overhaul those that inhibit economic expansion without helping consumers. This is part of his “reaching out to the business community”. The President wrote in an opinion piece in the Wall Street Journal recently that he’s mandating “a government-wide review of the rules already on the books to remove outdated regulations that stifle job creation and make our economy less competitive.” He said the initiative is part of an executive order he will sign today codifying a “balanced” approach to regulation. There is a “balanced” approach to regulation?
He wrote further, “We are seeking more affordable, less intrusive means to achieve the same ends.” Since the big recession has supposedly ended, the last Congress led by Barney Frank and Chris Dodd seems to have gone wild with new regulations, with little understanding about consequences.
But it seems there is nothing done in Washington these days that is not designed to gain votes, as opposed to doing what is right. Will Washington really pare back regulation? They can start with the over regulation at Fannie Mae and Freddie Mac. They have taken a bad situation, and through an excess of rules, made things worse. If you read my blog at all, you know I have carefully documented the pile of rules that the government has helped to create in the mortgage community. It is simply absurd that loans take longer, costs have increased, and appraisers are allowed to come from far outside the marketplace to appraise homes in neighborhoods in which they have no idea what is going on. If the President wants to gain some credibility, he can start by paring back regulations in the mortgage market, where less regulation will be immediate relief felt by mortgage consumers where they can have faster and easier transactions.