Which type of mortgage is specifically mentioned as being subject to revisions under the Dodd-Frank Act?

The Dodd-Frank Act specifically includes high-cost mortgages as a category subject to revisions due to its focus on consumer protection and the need to regulate lending practices that can lead to borrower distress. This legislation was enacted in response to the financial crisis of 2008, primarily to prevent predatory lending practices and ensure better transparency and fairness in lending.

High-cost mortgages are defined by the Dodd-Frank Act as loans that exceed specific thresholds with respect to interest rates and total points and fees. These loans often come with higher risks for borrowers due to their costs and terms, and the Dodd-Frank Act introduced additional requirements for these loans, such as clearer disclosures and an increased focus on the borrower’s ability to repay.

Understanding this context is crucial as it highlights the intent of the legislation to protect consumers from potentially harmful lending practices, particularly in segments of the mortgage market that historically have seen higher rates of defaults and foreclosures. The focus on high-cost mortgages aims to bring more regulation and oversight to these products, thereby enhancing consumer protection in the mortgage industry.