WASHINGTON (Reuters) - The chairman of the Senate Banking Committee unveiled legislation on Wednesday that would prohibit mortgage brokers and lenders from steering borrowers to high-cost loans. Would You Like To Know More? My beef is that it doesn't include the death penalty for everyone who has ever called/written me with a refinance offer. But then, I'm touchy about such things. Discuss.
And who will this hurt? People who are bad risks for lower-cost loans. Here's an idea: let the banks lend to whomever they think can pay, at whatever rate the loan applicant will agree to. If anything goes sour in that relationship, TOUGH. The bank, as a business, should know what it's getting into with its money. The customer, as a responsible adult, should know whether he/she can afford it. The government, as a politically-motivated destroyer of efficiency, should stay the fuck out.
I just love how no blame was put on the people who signed up for something they couldn't pay for. The mortgage companies didn't force these people to do anything, they willingly agreed to these 'predatory' contracts.
i'm for that with the adendum that there needs to be crystal clear, middle school level disclousre. even a decently well informed adult can THINK the understand what they are getting in to and then wake uup one day when the bad news hits and find it wasn't what they thought because of the...creative...way the information was given to them. I had that happen to me on a small loan that would normally have been inconsiequential. I can just imagine what it would do to a mortgage. And I have NO faith that there are a hundred million sleezballs out there chomping at the bit to do that dance. on the other hand, if you mean to say that if a borrower fails to pay, it's tough cookies for the bank and they have no recourse beyond reposession of the property in order to recoup there investment, then that's cool too...if you scam enough folks you will get hung out to dry often enough to curb your criminal impulses too...
Most of my loans have been decided on during in depth discussions of college football, and where the bankers son will take his recruiting trips. I assume this won't interfere with that.
