It's usually best when the government does less.
That's exactly what the politicians and bureaucrats in Washington have decided relative to the rise in foreclosures over the past year, the Boston Herald reported June 7, 2007.
"It would be a mistake to overreact to a market that is already showing signs of self-correcting at a time when little evidence has emerged that the broader economy is at risk, according to regulators and some lawmakers. They also note that consumer spending remains solid, the nation’s jobless rate is still low, and stock indexes have hit record highs in reaction to strong corporate profits."
Consumer advocates want changes in lending laws to protect borrowers. Federal Reserve Chairman Ben Bernanke believes "... we must tread carefully so as not to suppress responsible lending or eliminate refinancing opportunities for subprime borrowers."
According to the mortgage brokers I have spoken with recently, lenders have tightened lending rules on their own, especially for those seeking 100 percent financing.
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