Chapter 12, Problem 24Q

To determine

1. What is Dodd-Frank bill?
2. Aspects of financial system.
3. Work under consumer protection.

Concept introduction:

The authority has to examine and accomplish regulations on each and every business with more than 105 billion in assets which are hooked in issuing residential mortgage products to people with less amount of income. It requires the lenders to be sure about the borrower’s credibility, to know whether in future they would be able to repay the residential mortgages or not, under this regulatory head. From the perspective of a borrower it bans payments from the brokers which usually push the borrowers into higher priced loans.