All of the following are points of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 EXCEPT
A) creating a Consumer Financial Protection Bureau.
B) requiring mortgage lenders to review income and credit histories of applicants to ensure they can afford payments.
C) imposing tighter restrictions on banks to limit risky investments.
D) requiring firms that create mortgage backed securities to keep at least 50 percent of their value as reserves.

Question

Quizplus · Accepted Answer

The Dodd-Frank Act does require firms that create mortgage-backed securities to retain a portion of the risk (not necessarily 50 percent) to ensure they have skin in the game, but the specific requirement is not as high as 50 percent. This act was designed to prevent the kind of risky behavior that led to the 2008 financial crisis, but the 50 percent reserve requirement is not accurate.

All of the Following Are Points of the Dodd-Frank Wall