You seem to be a creature of your age.
In the 1970s we sold cars, trucks, houses and land on credit with zero government involvement. Well, there was the County Recorder.
“Identity theft” is a crime only known in the age of mass illegal immigration. Another charming feature of Mexico that has changed the U.S. in ugly ways.
Income fraud used to be easy to check: you just called the guy’s employer and asked them what he made. That’s probably illegal now, right?
Self Employed had to provide accountant reports. Don’t got one? Fine. Put down 30%.
And if you don’t make the payments...meet Vinnie, our Repo guy.
I have no idea why you think you need a federal agency to do these things. Have been in and out of sales in all sorts of businesses over the decades and not once do I recall needing some jerk who got his job with federal points to make it work.
Very few people believe me when I tell them that, for the most part, the young , or those that are considered to be young [college students, high schoolers and grads] do not know how to wipe their butts unless instructed by a Governmental Bureaucrat.
“I have no idea why you think you need a federal agency to do these things”
Well it’s not the 70’s anymore. In the 70’s lenders had the flexibility to make common sense decisions and get things done. That isn’t the case anymore.
You don’t seem to understand that the federal government REQUIRES this to done. A lender can’t just decide to “do it their way” and say screw the government.
You can’t go into business as a mortgage lender and say to heck with all the regulation and do things your way.
You seem to think lenders choose to do these just to have fun; not the case.