Will a Similar Situation to the 2008 Mortgage Crisis Reoccur in the Future?
Economists are not sure if a similar crisis will occur again. Since the 2008 financial crisis, the United States financial system has been secured by several government actions. In 2010, the Dodd-Frank Act was enacted with the aim of preventing another financial crisis. This Act requires that all banks, regardless of size, be subjected to stringent oversight and stress tests that gauge the bank's ability to withstand another hypothetical financial crisis.
It is important to note that some factors that led to the 2008 mortgage crisis still exist today. The Trump Administration increased the threshold for the amount of assets a bank can hold from $50 billion to $250 billion before that bank is subjected to enhanced regulation by the Federal Reserve. This rule has the effect of lowering the number of banks facing regulations. Similarly, the Consumer Financial Protection Bureau has scaled back financial protections for consumers. Despite the initial reduction of Standard and Poor's and Moody’s role in the credit system, these agencies have regained and maintained high influence over credit ratings. However, concerns about a future mortgage or economic crisis are not significant enough that they should prevent you from taking out a mortgage.