President Trump is seeking to stop the work of the Consumer Financial Protection Bureau(CFPB) and the director he appointed has ordered an end to the regulatory activity of the agency. The CFPB was authorized largely in reaction to the foreclosure crisis in the 2000s.
Atlanta, with its lack of regulations, was one of the cities hit hardest by the crisis. Professor Dan Immergluck noted who was hurt by this problem: “The whole regulatory regime for mortgages was buyer beware.”
“As soon as you saw sub-prime lending go up, within a year you would see an increase in foreclosures,” Immergluck explained. “A lot of households never recovered, and a lot of communities never recovered.”
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