http://paydaypundit.org/2010/10/28/technology-is-the-answer/ News and Information About The Payday Lending Industry Tue, 21 Dec 2010 17:59:56 -0800 hourly 1 http://wordpress.org/?v=3.0.1 http://paydaypundit.org/2010/10/28/technology-is-the-answer/comment-page-1/#comment-12849 Friend of the Industry Thu, 28 Oct 2010 19:52:49 +0000 http://paydaypundit.org/?p=11470#comment-12849 The greatest myth of all is that, had the Bureau existed prior to this disaster, it would have done anything to stop it. In fact, the issue has never been one of full disclosure - it has always been one of safety and soundness. (Do you really think that the average borrower needed more disclosure to know that misrepresenting their income and signing a note with a payment that was more than they could afford was wrong and risky?) All the regulators had to do was order FannieMae, FreddieMac and a handful of others to stop making and buying all those crazy stated income and neg am loans and this would have been prevented. No one else could have made them either because they would have had no where to sell them. The truth is that the banking regulators (and the borrowers) were just as drawn into to fantasy that we would never have a national housing recession as everyone else. Where was Elizabeth Warren then? The greatest myth of all is that, had the Bureau existed prior to this disaster, it would have done anything to stop it. In fact, the issue has never been one of full disclosure – it has always been one of safety and soundness. (Do you really think that the average borrower needed more disclosure to know that misrepresenting their income and signing a note with a payment that was more than they could afford was wrong and risky?) All the regulators had to do was order FannieMae, FreddieMac and a handful of others to stop making and buying all those crazy stated income and neg am loans and this would have been prevented. No one else could have made them either because they would have had no where to sell them. The truth is that the banking regulators (and the borrowers) were just as drawn into to fantasy that we would never have a national housing recession as everyone else. Where was Elizabeth Warren then?

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