Obama Unveils Strict New Plan for Dealing With Lending Collapse
Writing in today’s Financial Times the Presidential Candidate Barrack Obama wrote:
“While predatory lenders were driving low-income families into financial ruin, 10 of the country’s largest mortgage lenders were spending more than $185m lobbying Washington to let them get away with it,” citing figures from the Centre for Responsive Politics.
Obama said the government should
“stop the unlicensed, unregulated, fly-by-night mortgage brokers who are hoodwinking low- income borrowers into loans they can’t afford”.
Adding that:
“Washington needs to stop acting like an industry advocate and start acting like a public advocate”.
While certainly an innovative plan, the government may find it extremely difficult to fine mortgage lenders for their predatory lending tactics, as most lenders practice suck tactics knowing that they’re completely able to get away with doing so. Such prosecution with the intent to payoff mortgage loans past due by borrowers would likely fail to net the funds necessary to make much of a difference for the many who have been hurt by bad loans.
Such legislation while refreshing, is perhaps far too little and far too late to help borrowers with their high rate loans.
Comments
Leave a Reply
You must be logged in to post a comment.