TheStreet.com : Clinton Embraces Subprime Reform

[Omaha Steve]

http://www.thestreet.com/s/clinton-embraces-subprime-reform/markets/marketfeatures/10372916.html?puc=_googlen?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA

By John Fout
TheStreet.com Political Correspondent

I had said a few weeks ago that subprime lending would become a campaign issue. It has done so in spades.

Former Sen. John Edwards released a plan on lending as a larger part of policy speech on combating poverty several weeks ago that I covered. But subprime lending has affected more than just the poor.

Sen. Hillary Clinton (D., N.Y.) embraced subprime reform prior to an appearance at tonight's AFL-CIO forum in Chicago. Affordable housing has become a hot-button issue for unions in large cities across the country as middle-class families have been priced out of housing markets or fallen victim to unscrupulous lenders.

The Wall Street Journal and The New York Times ran articles announcing Clinton's new plan to address the subprime lending crisis preceding a speech she gave in New Hampshire this morning on how to protect America's dream of homeownership. Her campaign also issued a press release on the subject.

The plan announced today supplements the plan Clinton announced earlier this year to address the problems in subprime mortgages, and it includes the following points:

* Require mortgage brokers to disclose to borrowers that their compensation rises when borrowers' mortgage rates and mortgage fees are high.

* Work with states to develop strong licensing standards and require federal registration for mortgage brokers.

* Eliminate prepayment penalties on mortgage products.

FULL 2 page story at link.

[sandnsea]

1. Reveal ALL loans borrower qualifies for

That's the single most important law we need, and I don't see anybody advocating for it. Some of these companies pushed these horrible loans and never offered the fixed rate loans at all. I don't care how many people want to pretend that it was all stupid borrowers, the truth is that it just wasn't. If you're honestly trying to get a home loan and all they will offer you is an ARM, then why would you think some other mortgage company would offer you a fixed rate if you didn't have any info on average practices for your particular credit rating. People were out and out cheated and it makes me puke to see some Democrats blaming the victims.