U.S. Attorney General Eric Holder Jr.’s departure – or more precisely his replacement – is an issue with huge implications for the housing sector, and a former White House official bluntly explained why.

Jim Parrott, a former housing advisor in the Obama White House, cast much of the blame for today’s tight mortgage lending on the Justice Department’s aggressive enforcement actions in the wake of the housing bust, including the record multi-billion settlements reached with big banks in recent years.

It’s not so much the size or the number of the settlements, but rather the open-ended nature of the Justice Department’s agenda, and the sense that lenders are “just not sure what closure looks and feels like,” Parrott said at the Bipartisan Policy Center’s housing summit in Washington this month. [Read more]

http://wp.me/p4sUqu-Hv – Michael’s Blog