| The magnitude of the subprime mortgage crisis in 2007 and 2008 was such that there was a clamor for action by the industry, regulatory authorities, and Congress. The years since have seen a number of sweeping changes that ostensibly appear to address the root causes of the collapse and protect the industry, and the American economy in general, from a repeat occurrence. Closer review and scrutiny of these changes, however, suggest that many of them were not accurately aimed at the actual causes of the crisis, and that has potentially leaving the system more vulnerable than expected. This paper reviews some of the major actions, identifies which actions succeeded or failed to correct serious vulnerabilities, and suggests alternatives without consideration or discussion of political motivations. |
