Lawmakers, FDIC seek predatory lending crackdown (Reuters)

[Eugene]

Source: Reuters

Lawmakers, FDIC seek predatory lending crackdown

By Kevin Drawbaugh
Reuters
Tuesday, March 27, 2007; 2:59 PM

WASHINGTON (Reuters) - A top U.S. bank regulator and lawmakers
in Congress from both parties called for a national crackdown
on predatory lending, a main cause of the crisis in the subprime
mortgage market.

"The time has come for national anti-predatory lending standards
applicable to all mortgage lenders," Federal Deposit Insurance
Corp. Chairman Sheila Bair told a House of Representatives
subcommittee in a hearing on Tuesday.

Bair said Congress could require that mortgage lenders must take
into account a borrower's ability to repay a loan at its true cost,
not based only on initial, low payments, while also moving against
confusing and misleading mortgage marketing.

She also suggested possible restrictions on loan flipping, prepayment
penalties, escrow of taxes and insurance and the fiduciary obligations
of mortgage brokers.

-snip-

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/03/27/AR2007032701181.html

[DCKit]

1. Kinda late, don'cha think?

The money stolen is all gone. These people are the same pros that pulled it off in the late 70's early 80's. Come to think of it, Neil Bush was involved in one of those banks, Silverado Savings and Loan.

[no_hypocrisy]

2. Well, FDR created the SEC and put Joe Kennedy in charge of it

after the Crash of '29. He just didn't want it to happen again.

[INdemo]

3. Yes but under the * administration

and Republican controlled congress, max allowable interest rates have risen and other restrictions against these lenders were lifted.Why didnt we hear about these changes? They were slipped through hidden in other legislation..The truth in lending laws were practically re-written favoring these lenders..

[DCKit]

4. I didn't say there wasn't collusion

If they weren't using the government to enable the money merry-go-round, where would it come from?