Dodd Frank Certification
Dodd Frank Certification is relatively new to the housing marketplace and this site aims to provide information and resources around this very important piece of legislation. The Dodd-Frank Wall Street Reform and Consumer Protection Act comes at a time when trust of Wall Street companies is at an all time low. The act is meant to bring an end to years without accountability on Wall Street. 2008 brought in the worst financial crisis since the great depression and many large, legacy financial institutions fell victim to their own appetite for risk. In addition to regulating financial institutions and the risks they are allowed to shoulder, the Dodd-Frank Wall Street Reform and Consumer Protection Act brings in a framework for a substantial federally funded mortgage modification program meant to put an end to the financial crisis and get the United States back on the road to recovery.
The framework provided in the Act is manifested through “Dodd Frank Certification.” While this may sound like a cumbersome and time consuming process, attaining Dodd Frank certification is actually quite easy. In the process of applying for federally sponsored loan modification, applicants are asked to sign a piece of paper that asks them the following:
In the last 10 years have you or any associated applicant been convicted of any of the following with regard to a real estate transaction:
●felony larceny, theft, fraud, or forgery;
●money laundering; or
By answering no to the question above and signing the associated form you are on your way to Dodd Frank Certification as it pertains to a real estate loan modification transaction. Now, there are many more very important parts to the Dodd-Frank Wall Street Reform and Consumer Protection Act but for the purpose of this article dealing with consumer side loan modification, that is essentially it. As always, make sure you talk to a certified financial professional when considering any loan modification especially with the new rules involved.
The hope of continued focus on Wall Street reform is to bring order to what may be a very chaotic system. By implementing many of the different programs brought on by Dodd-Frank, our government is taking major steps in the direction of reform and economic stability. The hope is that Wall Street will do its part in insuring these refinements are closely followed in order to bring economic prosperity to every person in our global economy.