In the defense of banks, I don't think they really WANT to have loans go bad.....I think federal intervention to this extent is unwarranted.
Way to go Scott Brown. Thanks for giving Obamugabe more power.
back when I was taught about mortgage rules it was 28% of your income including your mortgage payment.
Could this possibly mean that borrowers who have NO chance in hell of being able to pay off the mortgage will no longer obtain said mortgages?
Wasn’t that free-wheeling “creative” lending the basic cause of the mortgage implosion?
This is a tacit admission that
Obama’s (previous) position that mortgages should be easy to qualify for
was a cause of the mortgage crisis.
There’s no way the US government could qualify for a loan under these restrictions, so I guess that means our debt limit has to go DOWN, huh?
Per Stuart Varney reporting this morning on FoxNews, lenders would have to certify that prospective buyers can actually afford the new mortgage payments.
lol
This whole housing loan fiasco for the last 2 decades has sounded like something out of satire or insanity.
We do live in an alternate reality. It sure isn’t the reality many of us now in our 60s grew up in.
As much as I hate regulation, this may not be a bad thing. Keep in mind that a lot of people who got these loans ran screaming to the press and anyone else who would listen how they got “suckered” or “hoodwinked” and didn’t realize that an “interest only loan” would require principal payments at some point. We live in a nation of children who can’t take responsibility for themselves.
Meanwhile, Hank Greenberg is suing the government for stock losses on AIG stock resulting from misguided meddling.
The regulations in question are an admission of failure. The actions of the zealot New York Attorney General discredited Mr Greenberg forcing lose of control. The company was taken over by Eurocrat apparatchiks that transformed the company such that it insured the tranches of bad loans securitized and peddled all over the world. The forceful takeover of AIG enabled the housing loan debacle.
Mr Spitzer’s reward was governor of New York. He pissed off old hank who spent a trifle of his billions learning and then exposing the fact that the Governor was in fact Client #9 of a Washington DC prostitution company
Yesterday AIG declined to become part of the suit. Old Hank in court is going to expose all the Eurocrat chicanery.
There will be no settlement....... he has more than enough money and is intent on exposing the whole Dodd Frank economic terror. Like eliot Spitzer, the day of the Queer from Massachuttes, Barney Frank, is coming
Makes ya wonder how we survived with so many options available before this brain trust came into being.. CFSB
Cuomo make any comments on it yet?
typical big gubamint agency.. another unelected bureaucracy of Geithner replacements in training.