RESPA Changes: Typical Government "Fix" That Doesn't Really Solve The Problem!
So, it's official now. The RESPA changes are in effect, although it is my understanding that they will not be enforced for another 4 months.
But, really, what's the point?
I understand the concept of the changes. And I am on board with anything that actually keeps greedy, evil lenders from doing their dirty work on the consumer.
But does a "streamlined" and consistent form really keep the banks from tacking on junk fees to a loan? No. Sure, it may keep the lil' devils from sneaking the last-minute fees on the final HUD. So what's to keep them from doing it on the Good Faith Estimate?
What we really need for true "reform" isn't a re-form -- meaning we don't need new forms. Standardizing a form is nice, and a good idea, but let's hit things at the core.
LET'S STANDARDIZE THE FEES!
Yes, make all the bank fees the same, limit which fees can be charged, base the fees on credit score, make the lenders make the loans at certain specific rates based solely on credit score. This will eliminate the arbitrary denials that are taking place so often these days.
But it will never happen. Because the lenders do what they want. They run our government. They own our officials. They decide what is what; they pretend to be "outraged" when a new "consumer protection" is passed but secretly don't care, because they helped create it and bought the officials to ensure it would be they way they want it.
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