Lenn,

Interesting points. I love it when we focus on "creating law" when we really mean "enforcing" law.

Dave.  Thanks for dropping by.  I posted this at the absolutely worst time of the day and I didn't really think anyone would be reading it.  You're right.  I've been screaming that message for a month, or two, or three.

Lenn,

Enforcement of existing laws would have gotten rid of a lot of riff raff BEFORE the damage was done. Unethicals have left our industry shipwrecked. Thanks for a nice post.

FRAN.  Thanks for commenting.  You are absolutely right.  I keep hearing about bad loans written.  Where have the regulators been??????

Did you catch the press conference ? Any thoughts ? I missed the first few minutes as a client called ? But, caught the rest .

Missy.  Awful.  Just awful.  He proposes to help folks in arrears, after their credit is already ruined.  He proposes to give tax breaks for short sales and foreclosures, just what everyone dreams about.  He proposes to enforce the mortgage laws, mmm, about 6 months late. 

Want to know what I really think??

I'm not sure the President needs to worry about Congress trying to embarrass him.  He's done an awfully good job of doing that to himself.

Where was the "rigorous enforcement of predatory lending laws" during the past seven years?  Oh, I know, we don't want too much government regulation, do we?  At least until the subprime meltdown happened, that is.

Eric.  You are absolutely correct. 

What I find so curious is that lenders I work with would never permit any of the folks who got those sub-prime loans to get by with anything.  How did they all do it. 

Where have the regulators been for the past several years??  Good question.

Lenn, you've written an excellent series on the mortgage crisis.  I may be missing something, but I don't see how the President's call to improve FHA, or reform foreclosure recapture tax, is going to help folks who are in jeopardy of losing their homes.  If we're going to help anyone, aren't they the ones who need help?

Why don't they just follow up like they're supposed to. Hey, Lenn. You ever think about doing a show like Larry King. I really think you'd be wonderful at it!

Sally, I agree, Lenn you would be great.

Sally.  That's what we've been saying for months.  The laws are there, enforce them.

Missy.  Thanks.  I've got enough trouble.

It's all just more smoke and mirrors.. If you read Bernanke's statement this morning these guys just don't have a clue... I'm betting the FED is not going to lower  the Funds rate in Sept. and if they do it will only be 1/4 of a point which will do nothing..  Truth is I'm afraid that whatever they do will only make the situation worse.. most people in foreclosure should never have bought that home in the first place.. ..many had a hard time making the rent each month let alone a house payment.  You can't legislate against  stupidity.. and neither the lenders or buyers used any common sense.  

Right you are Kaye.

But, they'll do something, even if it's wrong in order to get votes. 

I want to see a few "perp walks" of high-binder loan officers and underwriters and investors.  That would do more to turn things around and give some confidence than anything they've suggested so far.

Something needed to be said....and it was.  Heck, the stock market is up as a result!

Enforcement...by whom? How about a regulatory committee headed by the Nations leading mortgage execs! That would fix everything and fill the "need". Wouldn't it?

Requirements for consumers seeking assistance: Equity(eliminates 80%), Current on payments(eliminates 10%..or more) Other proposed requirements (eliminates 9%) of the 1% remaining......disqualified because of their income level. Good plan! So....lets just bail out the lenders with the money saved!

Free at last, free at last, thank God O Mighty, We are free at last.

Christopher.  Right you are.  Something needed to be said.  But, it should have been said by someone who knew what they were talking about. 

Yep.  All the mortgage companies and builders are up. 

Today. 

Enforcement????  That is easy.  There are rules about LTV for certain loan instruments and lenders have to follow those guidelines, verifying borrowers info or something is wrong.  Enforce those rules.  I believe that there was undue pressure on a lot of borrowers to sign what they didn't understand.

The GAO could find them.  FDIC could find them.  Just follow the documents.  Verify documents will do it.  There are lots of ways.  But, I know it isn't going to happen. 

Maybe the government will form a new RESOLUTION TRUST CORPORATION to sell off the foreclosures and bail the lenders out. 

Hey, that's an idea. 

Perp walks would be good! If it is good for Martha Stewart, it would be good for the mortgage business. RTC? Sounds scary to me. I do believe the speech is a good thing in that it calms the fears of the market. Good press will help after months of concentration on the bad.

I love  this post Lenn. Especially the sex part. Now hasn't the mortgage industry been having sex with the consumer for about 5 years now? Sometimes willingly and sometimes against their will or knowledge? See how I did that without mentioning the F word one time:)

Jim.  I believe that what calmed the fears of the market was that Bernanke didn't say he was taking the opportunity to raise rates.  I don't believe a single word of substance came out of the President's mouth.  But, I didn't expect anything.

Bryant.  Thanks.  I agree.  The mortgage industry has been "having their way" with a lot of borrowers for just about 5 years now.  Of course, as you know, I believe that what home buyers/borrowers need is a good buyer's agent or an honest listing agent.  I still put a lot of the responsibility for this debacle on the backs of agents who don't do their job.  We don't need 1,300,000 REALTORS.  We need about 300,000 GOOD REALTORS.

Right on point as usual Lenn...I missed the speach. But I gather it was more of the same...as usual!

Joan.  Thanks for commenting.  Missed the speech?  It was actually more or less the same.  More less than more or less of more.  Or, something.