The sub prime mortgage crisis that swept the United States in the late 2000s has brought to the forefront the controversial issue of mortgage regulations. Earlier in the decade, a series of deregulations had contributed to an atmosphere of aggressive competition in the mortgage industry. Although this activity pumped billions of dollars into the U.S. economy, some experts say it ultimately contributed to the “race to the bottom “atmosphere that brought the country’s credit markets to a screeching halt.

In the current environment, it is likely that the level of mortgage regulations in effect will increase in the short-term. The most important set of mortgage regulations currently in effect are the provisions of the Truth In Lending Act, originally passed into law in 1968. This legislation requires that items such as sales price, payments, finance charges, and annual percentage rates must be clearly disclosed to prospective borrowers. The Fair Housing Act, also enacted in 1968, addresses the problem of discriminatory practices in mortgage lending.