Financial Reform And Mortgage Lending By Thrift Institutions

Author : Kent W. Colton
Publisher :
ISBN 13 :
Total Pages : 52 pages
Book Rating : 4.E/5 ( download)

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Download or read book Financial Reform written by Kent W. Colton and published by . This book was released on 1980 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the early 1970s there has been a wide range of proposals for comprehensive financial reform. For over a decade national legislation concerning these proposals--which were designed to alter the basic asset-liability mismatch of the housing oriented thrift institutions--has been stymied. However, in March of 1980 the Depository Institution Deregulation and Monetary Control Act of 1980 was passed into law. Although the legislation includes sweeping changes, this paper argues that the Bill was primarily a matter of Congress acting to legitimate innovations that were already underway at the state and local level--fueled especially by technology, consumer pressure, financial markets and regulatory action. In fact, lead by such innovations as the money market certificate, negotiable order of withdrawal (NOW) accounts, alternative mortgage instruments and an expanded secondary market, it seems that a strong silent revolution has been underway for the last decade. This evolution, coupled now with national legislation, will undoubtably substantially alter the activities and composition of thrift institutions. This paper, then, outlines what has happened over the past decade, the reasons for legislative failure until recently, and the factors that have fueled the evolution that is underway. It also discusses the prospects and implications for the future, especially as they relate to financial institutions, housing, and the consumer.