American banks, in some respects, had to comply by a much stricter regulatory framework than their Canadian counterparts with regards to the allocation of mortgages to low-income households which indubitably incited a languishing of the standards of mortgages issued by American institutions. Ergo, we can effectively conclude that the Canadian financial regulatory code is not stricter, but rather, simply different on the basis of its approach to the regulation of financial services in that it is determined by principal, as Canadian banks are not subject to such provisions. Hence, the Canadian financial system was not preserved from the deleterious shock of the financial crisis solely as a product of stricter regulations. Moreover, HUD (Houses and Urban Development, a US government program which implements and creates housing policies) also imposed the requirement that 40% of Fannie Mae and Freddie Mac’s loans must be allocated to low-income households and the Riegele Neal-Act also imposed similar requirements on private investment banks while allowing them to partake in interstate banking.
1986-Today 