Mesa Community College REA 281
Principles of Real Estate Law study materials
Laws that Led to the 00s Housing Market Bubble-Crash
These laws are commonly regarded as the reason for the financial meltdown:
* 1999: Gramm-Leach-Bliley Act
* 2000: Commodity Futures Modernization Act
* 2004: SEC further deregulates financial institutions
Steps the government has taken to make our economy whole again
* 2008: Government takes over Fannie Mae and Freddy Mac, September
* 2009: American Recovery and Reinvestment Act
* 2010: Dodd-Frank Wall Street Reform and Consumer Protection Act
Depression-Era Laws that Provided Decades of Stability
* Glass-Steagall Laws
Glass-Steagall provided security to average people to prevent a run on the banks.
Breaking Glass-Steagal (Gramm-Leach-Bliley Act, 1999) means breaking the boundary between mainstreet and Wall Street. In other words, The People are forced to insure all bank activity.
Laws that Did Not Cause the Financial Crisis
Even though some people try to blame these laws!
These are the two laws that get the blame for turning income level into a protected class. The laws were simple reporting laws, but the bankers lumped Fair Housing together with these laws and said this is the equivalent of making income level a protected class:
* 1975: Home Mortgage Disclosure Act
* 1977: Community Reinvestment Act (Community Development Act)
The following two laws are next on the timeline, but they did not cause lenders lend to financially unqualified people.
* 1988: Civil Rights Act of 1988 adds disability and family status as protected classes
* 1990: Americans with Disabilities Act
The 1988 law says landlords cannot discriminate against financially qualified handicapped people. The 1990 law is why we have handicap entrance ramps in public buildings, handicap parking places, handicap friendly curbs, etc.