President Barack Hussain Obama, President of the United State of America's administration according to an article in the "International Herald Tribune" and on their web site: ttp://www.iht.com/articles/2009/01/25/america/25regulate.php that I found on the Drudge Report, is promising major changes in the way mortgage brokers exist! It says: "they would propose new federal standards for mortgage brokers who issued many unsuitable loans and are largely regulated by state officials."
It's obvious that they mean "mortgage bankers" but it's highly unlikely that they care, brokers are what they hear in the sound byts so it's the brokers their going to get!
Unfortunately, words do have meanings and the mortgage brokers are going to suffer. For the record brokers don't design the loan programs or approve the borrowers.
Regarding those mortgage bankers, few of them designed loan programs they just facilitated the really big lenders programs.
Even the big securitisers that ultimately designed the programs were just expanding to conform with government mandated social programs.
The mandatary "Community Reinvestment Act" is only a facilitator. If it were totally wrong, how do we explain the over whelming success of over 90% of it's beneficiaries. If as many do you blame this government program, why would you think additional government interferences could actually help the consumer.
If President Barack Hussain Obama his Administration and Party really want to cure the problem consider the truth of the matter.
Prosecute the criminals at the top of the big securitisers that faked records to collect bonuses!
Prosecute the regulators we already have that allowed this!
Prosecute the Congressman that took huge donations to look the other way and grease the skids!
We've already got the necessary laws!
What would make anyone think that any new laws and new bureaucrats would be any better?Most of the mid-level mortgage banks that failed did so waiting for one or two more basis points. That's bad management, greed, foolishness, but not criminal!
Mortgage brokers are not without sin, there is some fraud. Both state and Federal laws ready out law fraud.
Prosecute fraud, when ever and where ever you find it!
Expos facto laws won't get the perpetrators of current problems.
New laws and bureaucrats only means new scheming and additional payoffs.
If you really want to go after mortgage brokers , go after anyone who sold an "option arm" to financially unsophisticated and/or salaried/hourly workers!
Go after the schools that graduated people with so little education they can't understand, if you don't make your payments you can't keep the collateral! (Sir in this case the homes are the collateral.)
Mr. President if you'll go after the rest I'd forgive you pardoning yourself.
Sir, only family is more important than a man's home. You've got allot of new but sub-prime Fema trailers why not send one to your brother?Bill
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