Garn - St. Germain Depository Institutions Act
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The Garn-St Germain Depository Institutions Act of 1982 was a United States federal law enacted in 1982 that deregulated the Savings and Loan industry. This Act turned out to be one of many contributing factors that led to the Savings and Loan crisis of the late 1980s.[1]
The bill, whose full title was "An Act to revitalize the housing industry by strengthening the financial stability of home mortgage lending institutions and ensuring the availability of home mortgage loans," was a Reagan Administration initiative.[2]
The bill is named after its sponsors, Congressman Fernand St. Germain, Democrat of Rhode Island, and Senator Jake Garn, Republican of Utah. The bill had broad support in Congress, with co-sponsors including Charles Schumer and Steny Hoyer.[3] The bill passed overwhelmingly, by a margin of 272-91 in the House.[4]
Title VIII, Alternative Mortgage Transactions, allowed Adjustable rate mortgages [5]
[edit] References
- ^ Leibold, Arthur. "Some Hope for the Future After a Failed National Policy for Thrifts" in Barth, James et al. The Savings and Loan Crisis: Lessons from a Regulatory Failure, pages 58-59 (2004). Leibold cites Strunk and Case, Where Regulation Went Wrong: A Look at the Causes Behind Savings and Loan Failures in the 1980s, pages 14-16 (1988).
- ^ Reagan, Ronald. "Remarks on Signing the Garn-St Germain Depository Institutions Act of 1982" (1982-10-15).
- ^ H.R. 6267, Cosponsors.
- ^ H.R. 6267, Major Actions.
- ^ FRB Philadelphia - PL 97-320, Garn-St Germain Act
