With the man behind The Art of the Deal in the Oval Office, it’s no surprise that the economy is booming. Banks are gearing up for increased lending with the expectation that Dodd-Frank will be rolled back and student lending restrictions reduced. Combine that with industry-specific boosts, such as those benefitting the auto industry, and the economy is set to take off.

Whether you’re looking to borrow, refinance, or you’re just generally watching the market, there are big things on the horizon. Here’s what to expect as President Trump reintroduces real freedom to the banking world.

Dodd-Frank Changes Yield Home Loans

If you ask the Obama administration figures behind Dodd-Frank, you’ll hear constant discussion about how lack of regulations led to the housing bubble and the foreclosure crisis. They’ll patter on about the need for greater consumer protections. But none of them will mention the fact that Dodd-Frank creates unnecessary barriers to borrowing. They’ll also ignore the hundreds of shuttered credit unions — once federally insured, Dodd-Frank’s restrictions shut them down.

Due to Dodd-Frank, many seeking home loans have had to pair private loans with non-profit offerings supported by fundamentally unnecessary Treasury programs. Why funnel money into these high-risk programs, taking money out of taxpayer pockets for funding, when better private loan practices would eliminate the need for such non-profits? In terms of the housing market, Dodd-Frank only created more problems. Dismantling the act will reset the market for improved functioning.

Don’t forget that changes to home loan structure will also influence refinancing possibilities. For homeowners interested in adjusting their current borrowing rate, lifting Dodd-Frank restrictions will broaden the options, allowing individuals to use their home equity for high-impact projects.

Bringing In Better Business Lending

In addition to creating unnecessary barriers to home-related lending, Dodd-Frank has also harmed the economy by making small business loans difficult to come by. As President Trump and his advisors have observed, the Dodd-Frank regulations make processing loans such an onerous procedure that banks rarely offer loans below $100,000. This is often above and beyond what small businesses need or qualify for, yet these businesses can’t generate new jobs to stimulate the economy if they can’t get appropriate loans.

With Dodd-Frank out of the way, both the housing and job markets should improve, demonstrating precisely what President Trump and his fellow Republicans have long known -– excess regulation stifles our economy and is one of the factors behind America’s reduced global status. Making America great again includes dismantling Dodd-Frank.

Economic Growth Comes from The Heartland

Not all economic growth stems directly from market-linked policies. Consider, for example, President Trump’s now-manifest promise to take care of American workers. By stepping up production in the steel belt and bolstering the automobile industry, more Americans can buy quality cars at reasonable prices. This is also bound to lead to increased lending, with auto loans coming from major banks and smaller lenders. This is what makes American industry so powerful.

More Student Loans from More Sources

In yet another example of Obama-era overreach, restrictions on student loans have left college students tied exclusively to the federal government – since 2010, all student loans have come from the Department of Education. The rules were intended to protect young borrowers, but how does restricting free marketplace choice protect the consumer? It binds them to a monopoly.

Although the increased Federal Reserve interest rate may temporarily increase the cost of student loans in the coming year, President Trump aims to open the market back up to greater student choice. With students able to select among a wider variety of lenders, they can drive rates down through demand. You can’t drive down the Department of Education’s lending rates if they know everyone will be forced to borrow from them.

Toward Tax Code Transformations

President Trump’s economic goals aren’t limited to the world of lending; ultimately, he’s also pursuing the slow partnerships necessary to reform the tax code, eliminating taxes related to the ACA, reducing capital gains taxes, and a general reduction to corporate taxes meant to stimulate the economy by lifting a burden from job creators. The Republicans also aim to reduce the number of tax brackets from seven to three, vastly simplifying the overall tax structure.

Tax reforms will be a gradual undertaking, unlikely to be accomplished all at once, and it’s one that will require across the aisle cooperation. Still, these changes should work together to push the 3% or even 3.5% economic growth President Trump has promised in 2017.

They’ll also be the triumph the party needs after Democrats stymied the ACA repeal.

When President Trump says he’s going to make American great again, that statement is predicated on an improved economy. Under the previous administration, the economy was stagnating, but since President Trump’s inauguration, the numbers are improving. Unemployment is down, job creation is up, and consumer confidence is improving. These are powerful predictors of where this administration is going — always upward.

With the man behind The Art of the Deal in the Oval Office, it’s no surprise that the economy is booming. Banks are gearing up for increased lending with the expectation that Dodd-Frank will be rolled back and student lending restrictions reduced. Combine that with industry-specific boosts, such as those benefitting the auto industry, and the economy is set to take off.

Whether you’re looking to borrow, refinance, or you’re just generally watching the market, there are big things on the horizon. Here’s what to expect as President Trump reintroduces real freedom to the banking world.

Dodd-Frank Changes Yield Home Loans

If you ask the Obama administration figures behind Dodd-Frank, you’ll hear constant discussion about how lack of regulations led to the housing bubble and the foreclosure crisis. They’ll patter on about the need for greater consumer protections. But none of them will mention the fact that Dodd-Frank creates unnecessary barriers to borrowing. They’ll also ignore the hundreds of shuttered credit unions — once federally insured, Dodd-Frank’s restrictions shut them down.

Due to Dodd-Frank, many seeking home loans have had to pair private loans with non-profit offerings supported by fundamentally unnecessary Treasury programs. Why funnel money into these high-risk programs, taking money out of taxpayer pockets for funding, when better private loan practices would eliminate the need for such non-profits? In terms of the housing market, Dodd-Frank only created more problems. Dismantling the act will reset the market for improved functioning.

Don’t forget that changes to home loan structure will also influence refinancing possibilities. For homeowners interested in adjusting their current borrowing rate, lifting Dodd-Frank restrictions will broaden the options, allowing individuals to use their home equity for high-impact projects.

Bringing In Better Business Lending

In addition to creating unnecessary barriers to home-related lending, Dodd-Frank has also harmed the economy by making small business loans difficult to come by. As President Trump and his advisors have observed, the Dodd-Frank regulations make processing loans such an onerous procedure that banks rarely offer loans below $100,000. This is often above and beyond what small businesses need or qualify for, yet these businesses can’t generate new jobs to stimulate the economy if they can’t get appropriate loans.

With Dodd-Frank out of the way, both the housing and job markets should improve, demonstrating precisely what President Trump and his fellow Republicans have long known -– excess regulation stifles our economy and is one of the factors behind America’s reduced global status. Making America great again includes dismantling Dodd-Frank.

Economic Growth Comes from The Heartland

Not all economic growth stems directly from market-linked policies. Consider, for example, President Trump’s now-manifest promise to take care of American workers. By stepping up production in the steel belt and bolstering the automobile industry, more Americans can buy quality cars at reasonable prices. This is also bound to lead to increased lending, with auto loans coming from major banks and smaller lenders. This is what makes American industry so powerful.

More Student Loans from More Sources

In yet another example of Obama-era overreach, restrictions on student loans have left college students tied exclusively to the federal government – since 2010, all student loans have come from the Department of Education. The rules were intended to protect young borrowers, but how does restricting free marketplace choice protect the consumer? It binds them to a monopoly.

Although the increased Federal Reserve interest rate may temporarily increase the cost of student loans in the coming year, President Trump aims to open the market back up to greater student choice. With students able to select among a wider variety of lenders, they can drive rates down through demand. You can’t drive down the Department of Education’s lending rates if they know everyone will be forced to borrow from them.

Toward Tax Code Transformations

President Trump’s economic goals aren’t limited to the world of lending; ultimately, he’s also pursuing the slow partnerships necessary to reform the tax code, eliminating taxes related to the ACA, reducing capital gains taxes, and a general reduction to corporate taxes meant to stimulate the economy by lifting a burden from job creators. The Republicans also aim to reduce the number of tax brackets from seven to three, vastly simplifying the overall tax structure.

Tax reforms will be a gradual undertaking, unlikely to be accomplished all at once, and it’s one that will require across the aisle cooperation. Still, these changes should work together to push the 3% or even 3.5% economic growth President Trump has promised in 2017.

They’ll also be the triumph the party needs after Democrats stymied the ACA repeal.

When President Trump says he’s going to make American great again, that statement is predicated on an improved economy. Under the previous administration, the economy was stagnating, but since President Trump’s inauguration, the numbers are improving. Unemployment is down, job creation is up, and consumer confidence is improving. These are powerful predictors of where this administration is going — always upward.



Source link

About the Author:

Leave a Reply


Fatal error: Allowed memory size of 134217728 bytes exhausted (tried to allocate 32 bytes) in /home/conserv/public_html/wp-includes/wp-db.php on line 1837