Fighting the last war
June 2, 2010 | federal legislation, industry | Comments (0)Rep. Rush Holt(D-NJ) in The Hill:
The financial meltdown has much of its origin in lax consumer regulation and consumer abuse. Financial lenders steered families into mortgages they could not afford to repay, offering only subprime loans to some who qualified for prime loans and then packaging those loans and selling them to investors on the securities market. Additionally, credit card companies used unfair and deceptive practices to exacerbate nearly $1 trillion in nationwide credit card debt.
So it’s important to have a strong, independent Consumer Financial Protection Agency (CFPA), such as we passed in the House.
So we need a CFPA to prevent another subprime mortgage crisis? I think the bankers and mortgage lenders are out of that business. My guess is the next financial crisis will have nothing to do with mortgage lending.
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