Posted on 10/24/2007 8:32:08 AM PDT by Jacquerie
WASHINGTON (MarketWatch) -- A bill that would require licensing mortgage originators and standards for subprime mortgages won support from two federal banking regulators Wednesday.
However, Federal Reserve Governor Randall Kroszner warned that any new legislation should not restrict responsible lending or securitization of mortgages. "Getting this balance right is particularly critical now, as many borrowers facing rate adjustments may need to refinance into more affordable loans," Kroszner said in testimony prepared for delivery. Kroszner said Congress should also not approve any measure that would have a "detrimental impact on the ability of lenders to securitize loans."
The House Democrats' legislation includes a measure that would let homeowners sue Wall Street firms for relief from mortgages that they could not afford. See earlier story.
Lawmakers are examining the bill Wednesday amid more bad news for the housing market.
Sales of existing homes and condos fell 8% in September to the lowest level in at least eight years, further evidence that the credit squeeze in mortgage markets is hurting home sales, the National Association of Realtors reported Wednesday. See full story.
Frank, the committee's chairman, said at the outset of the hearing that the U.S. is experiencing its worst financial problems since the late 1990s.
"We are in a serious crisis," the Massachusetts Democrat said.
Spencer Bachus, the top Republican on the panel, echoed Kroszner by saying that credit should be protected as lawmakers try to fashion a solution to the housing problems.
"The competing values in this case are the availability of credit on one side and protecting borrowers from sharp practices and unethical conduct on the other," said Bachus.
(Excerpt) Read more at marketwatch.com ...
The Dems goal is to destroy everything this country has built up and ring in the new socialist/communist age. We no loner have a two party system in America like the one we once knew. International parties have united. We no longer have American against American for similar goals...we are faced with serious traitorous divisions from within.
***Amen and AMEN from a catman...***
We cats have a great deal of patience. And an ability to POUNCE when the prey is in sight. There’s nothing more tasty than a nice, fat democRAT.
Otherwise, PURRRRRRR.
This bill will hurt the very people it claims to help.
I agree. We wouldn’t need any “bills” if banks were forced to tighten up and not get bailed out.
If they don't give loans to anybody, they can't be sued by anybody. Hmm, no mortgage loans.... that will really help the economy.
Ridiculous! Wall Street didn't contract with them for the loans and the morons swore they knew what they were doing when they signed the contracts. This bill is more evidence the rats consider folks dumber than rocks, incapable of handling their own affairs, and freedom must be eliminated to be replaced by socialism and authoritarian rule by nannies.
This “fraud” was never going wild and is not the basis for the credit market problems. It is, however, a popular Dem talking point.
Do you smell class action law suit here?
Can you say keeping the Guici Gulf K Street types busy?
Can you say a gift from the DNC to the American Trial Lawyers Association?
This belongs to the borrower and the lender to resolve. Keep Congress out of it.
Can’t we just tax something?
Fraud? How about greed by people buying things they couldn’t afford. Those people shouldn’t be allowed to sue because of their mistakes. This is insanity by the dems.
You are correct. Remember all of the howling about lenders being "bigoted" against minorities because they weren't giving loans to people with horrible credit?
Well, golly gee willikers, who would have thought that lending an unemployed homeless guy sleeping on a park bench $500,000 to buy a house was a bad idea?
It seemed like a good idea at the time. The bank gets a loan at inflated rates, the man gets a house and we can even collateralize it into a CDO!
What’s the problem?
Great tagline.
No but perhaps you could sue the L.A. Times, New Your Times, and the Washington Post for writing articles that are favorable to the candidates that get elected that raise those taxes.
If the government wants to get into the regulation of scams they should start with the health insurance industry
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