Mortgage rates near historic lows have sparked a refinancing boom that has U.S. lenders struggling to handle the surge.
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“The industry has come a long way in terms of automation, but it’s still a people-driven industry,” Larsen said. “Mortgage insurers, appraisers and title companies, all those surrounding industries, they downsized as well.”

Here. Fewer regulations would make it easier to ramp up and downsize as a response to changed market conditions. So-called “consumer protections” make adjusting to changed market conditions more difficult. Spontaneous order is thwarted by red tape. The result is deeper frustration among the population, slower economic growth, and fewer jobs.