The pro-CFPA campaign won’t die
February 11, 2010 | Washington Post, federal legislation, industry | Comments (2)With a proposed overhaul of financial regulations facing stiff headwinds in the Senate, consumer advocates have redoubled their efforts to portray opponents as favoring big banks over the interests of ordinary Americans.
The latest offensive centers on the most divisive piece of the pending legislation: the proposal for a new agency to protect consumers of mortgages, credit cards and other such products from abuses by lenders. The Consumer Financial Protection Agency is a key element of the Obama administration’s blueprint for financial reform and was included in a House bill that passed in December with support only from Democrats.
Bad ideas never seem to die.
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Predatory Lending is a major contributor to the economic turmoil we are currently experiencing.
Here is an example of what I am talking about:
Scott Veerkamp / Predatory Lending (Franklin Township School Board Member.)
Please review this information from U.S. Senator Jeff Merkley regarding deceptive lending practices:
“Steering payments were made to brokers who enticed unsuspecting homeowners into deceptive and expensive mortgages. These secret bonus payments, often called Yield Spread Premiums, turned home mortgages into a SCAM.”
The Center for Responsible Lending says YSP “steals equity from struggling families.”
1. Scott collected nearly $10,000 on two separate mortgages using YSP and junk fees. 2. This is an average of $5,000 per loan. 3. The median value of the properties was $135,000. 4. Clearly, this type of lending represents a major ripoff for consumers.
http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F
What gibberish. Payday loans are not mortgages loans. And mortgage loans are in the trillions. Payday lenders issue $40 billion in credit a year in a $14 trillion economy. The industry has NO macro impact on the economy. It has a micro impact helping families get through a cash flow crunch.