With The Best Of Intentions

I agree with you, especially on the point about lack of knowledge and hands-on experience.  I sometimes wonder when these people had an actual long conversation with those of us in the trenches lending on an everyday basis.  Keeping us in the loop and advising would correct some of the problems.  Good intentions alone can't accomplish what needed and still needs to be done ...

Gene

It's kind of like making dinner for your wife and she winds up having to do herself because you screwed it up so bad.  Sorry honey "With All Good Intentions".  It's a good life.

That is standard government procedure. Make rules and regulations without any understanding of how it will impact the industry or market.

Another version of "We are smarter than you and know better than you, don't question us!" Then: "Oops, who could have known that these problems would come up".....Anyone who actually works in the business!

Hi George, I don't think "good intentions" had anything to do with it. I agree with Lenn Harley's comment that a nation of tenants was the goal.

Bill Roberts

I think it was just a knee jerk reaction to the housing meltdown.  And we are, and I use the term loosely, "lead" by elected officials whose only adgenda is........wait for it....getting re-elected.  No one in Washington feels any responsibility to be working for the greater good.  Our local real estate attorney/guru also teaches law on the side and he is spending a whole semester doing nothing but having the students decipher the CFPB. Sounds like death by a thousand paper cuts to me!

And what you write about happens when actions are taken in any situation without first hand knowlege and research of just how to best handle things.  It (and I hate to use this word), always ends up in disaster because it's a reacation.  Then we end up trying to fix the issues that the "solution" caused as well as fix the original boo boo.  

Dear Naive: There are no good intentions. They are working to bring us into a new economy that will control us and the way we live. Hard to believe, just stay tuned.

George

Interesting post.  As a point of information, today in mortgage news daily, there was an article that had commentary inside on the CFPB and a desire from the House Financial Services Committee that was asking for comments on this situation regarding the CFPB.

You could probably write a follow-up Blog on this.  To go to the House Financial Services site and comment, please go to the link below:

Comment page on CFPB with House Committee

Let's hope they get many comments........Here's Your Chance

When Congress passes a perfect bill everyone agrees on I will be the most worried. I can't think of much of anything that comes out of the box that works to perfection in the field and this is no different. As to the paranoid who believe that this is some ancient cabal coming together to destroy us please quit watching that Mel Gibson movie.

George, I think you chose very kind and appropriate words as I truly believe the intentions are good, albeit often misguided. The latter happens for many reasons, some of which you mentioned e.g. not thinking through all the possible, often negative, consequences. Also, as part of the political process, sometimes original concepts get watered down to something that doesn't even resemble the initial intent. 

Great post George - I guess all we can do is wait and see, eh?    And cross some fingers and toes along the way, since it will affect us all.

George, unfortunatley, a lot of times the best of intentions have unintended and undesirable side effects and consequences.

George, it does seem to be standard operating procedure that those having power to affect change does so without consulting those closest to the issues.

George, Well stated, "They made rules & Guidelines without having hands on knowledge of the industry" so why the heck are they making rules when they have not a clue. We can rack those best intentions up with the heath care plan. Far more are being hurt than helped, IMHO.

George - this is brilliant.  I think you have summarized the problem so accurately

• They made rules & Guidelines without having hands on knowledge of the industry
• They made rules & Guidelines without completely thinking through the consequences of their actions
• They made rules & Guidelines based on what had happened and not on what is happening.

Good morning George. Well done! The sad part about any reactionary rules and regulations, the horse has already left the barn.

Some of these rules and regulations are actually pretty funny. "The Ability to Repay", like what lender in the last 5-6 years will do a mortgage if the borrowers don't have the ability to repay the loan?

Hello George,

I will have to go with the more cynical take on this as I believe the "best intentions" are just part of the Washington machine's overall scheme...

I agree with Lisa V.  I think a lot of these rules and guidelines were definitely not well thought out with every scenario and taxpayer in mind.