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Whalen: “We Went Way Too Far With Dodd-Frank”

Daily Ticker

"This is a big deal."

Chris Whalen wants everyone to know that the Fed is fretting about deflation, and the lack of credit creation. The consequences for the economy are far-reaching -- just look at the housing market, says Whalen. He's executive vice president at Carrington Investment Services, a firm that specializes in real estate investment and residential mortgage specialization.

"I think we have to go back and look at Dodd-Frank again..." Whalen tells The Daily Ticker. "In the new regs from the CFPB it says that 6.5% is the limit after which it's considered a high-priced loan. 6.5% is not a high-priced loan. You've got to get up to 9 or 10% before that threshold should really apply so they're cutting millions of homeowners out of the market. That's a policy decision and I think it's a wrong one."

The Dodd-Frank Act was put in place to avoid another financial crisis, but as it approaches its 3-year anniversary Whalen is taking direct aim at the new regulations and their impact on banks and mortgage originations.

Meanwhile, just across town, Treasury Secretary Jack Lew gave his first big speech aimed at Wall Street -- as the keynote speaker at the CNBC/Institutional Investor Delivering Alpha Conference.

"By the end of this year, the core elements of the Dodd-Frank Act will be in place," Lew said. "Now if a financial firm fails, taxpayers will not have to bear the cost of the failure. Dodd-Frank did not stifle economic growth, it did not halt lending activity. It actually achieved just the opposite."

We imagine Whalen would take issue with those comments by the Treasury Secretary. Watch the video above to see the full-force of his argument against Dodd-Frank.

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