LEGISLATIVE
Dodd-Frank: The End Is Near? Impending reforms to the Act could represent a double-edged sword for private lenders to the housing and construction industries. by Jeffrey N. Levin
O
banks. Whether these provisions will be
do deals. On the other hand, the possible
need to scrap the Dodd-Frank Act (the “Act”).
either way, changes could represent a dou-
tions where small lenders and community
transition team signaled that reform will
housing and construction industries.
n the campaign trail, candidate Donald Trump frequently discussed the
Following the election, the President-elect’s most likely come incrementally. The area
repealed or replaced remains to be seen. But ble-edged sword for private lenders to the On the one hand, private lenders may ben-
most likely to be tackled first encompasses
efit from easier lending requirements from
lending by small lenders and community
of capital—opening up more liquidity to
the portions of the Act that have hampered
18 PRIVATE LENDER
community banks and other bank sources
loosening of restrictions may create condi-
banks start competing more directly for the non-standard deals that are currently the
domain of private lenders. To get a handle
on what the future may hold, it’s valuable to look more closely at the Act to understand
what its impact and legacy on bank lending