Comment of the Day
November 1, 2010 | Uncategorized | Comments (1)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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Supposedly she advocates “individual responsibility”. Her actions says she only believes it in theory, not in practice. A true advocate in individual responsibility would have advocated prosecution of those that perjured themselves by lying on their mortgage forms of their income and net worth. Oh, that’s right! The mean mortgage agents and greedy banks held guns to their heads…they had no choice….
Every mortgage application has the same wording just above the signature line… Oh, what am I saying…who reads those…no one should be held responsible for something they didn’t read…
A whole bunch of consumers might have got hurt by the crisis, but none of them paid the price they, by law, should of.
In her “so called” research report, what she so subtly claims is that the American consumer is ignorant (uneducated) and gullible (unrational). I take great exception to that. I truly believe that 99.9% of home buyers knew exactly what they were doing and getting. Banks and mortgage companies just made it too easy for them.