The National Association of Home Builders is praising President Donald Trump’s executive order to reform the Dodd-Frank Act.
The organization’s comments came in response to an announcement on Friday that Trump would review the federal law, which was enacted in 2010 in response to the global downturn known as the Great Recession.
Granger MacDonald, chairman of the NAHB and a home builder from Kerrville, Texas, argued the federal law has hampered the country’s housing recovery and slowed economic growth.
“We support common-sense regulations to protect American consumers and preserve our nation’s banking system,” MacDonald said in a statement. “However, the tight lending conditions created by Dodd-Frank are preventing too many home builders from receiving loans and restricting mortgage financing to credit-worthy borrowers.”
Dodd-Frank marked the most significant changes to U.S. financial regulations since the reforms that followed the Great Depression in the 1930s.