This morning I read a USAToday artice titled Fed to curb shady home-lending practices . Once again, it inspired me to question the situation and the response.
I am pro-regulation when it inspires transparency. In other words, I feel as though some brokers hide or manipulate borrower information when submitting apps to lenders and I also feel as though the borrowers often do not receive adequate explanations pertaining to the details of their loan. If this aspect could be improved, then I would support it.
Beyond that, I feel as though every lender has a right to offer any loan and a borrower has the right to take it or not. Both parties should be allowed to measure the risks and make their own decision.
The recent credit crunch and subprime meltdown are mostly a result of investors, lenders, and borrowers taking a risk and losing. That's their prerogative! The availability of credit is necessary for the excelleration of progress.
We're already seeing lenders tighten their own standards - they don't need the government's help!