Finally Federal thrift regulators are working on a proposal that could lead to a ban on ‘unfair and deceptive’ lending practices – it may be too late
Joe Weinman
Jul. 11, 2007

We all know what happens when the doors are closed after the thief has stolen the gem and ran out. It is too late and too little. Finally Federal thrift regulators are working on a proposal that could lead to a ban on ‘unfair and deceptive’ lending practices. This should have been done six years back when the mortgage scams started.

The sub prime mortgage problem did not happen overnight. It happened over a six-year period. Many mortgage brokers and bankers used the predatory lending practice for a long time. The refinancing and easy money mortgages were fueling the economy and no one understood the bubble was being created. We shouted in India Daily for the last three years in article after article. No one really cared. Now after the damage is all done and house in on fire, Federal thrift regulators are working to make sure another fire does not happen.

The harder regulation will actually create far more severe problem for the economy now. The slowdown in mortgage refinancing and new loans will actually create a severe depression in the economy within next two years.

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The refinancing and easy money mortgages were fueling the economy and no one understood the bubble was being created. We shouted in India Daily for the last three years in article after article. No one really cared.
READ MORE>>

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