Barney Frank wants changes for mortgage industry
Filed under: Real Estate
There's no doubt that sloppiness, laziness, greed and just plain fraud and bad ethics in the mortgage industry were a big part of what got us into this mess.House Financial Services Committee chairman Barney Frank has apparently figured this out, and has some plans to put a stop to it. The New York Post has some details on what some of Frank's proposals might be:
- Make it illegal for mortgage brokers and lenders to steer borrowers into higher-risk, exotic products in pursuit of the higher commissions that these loans generate.
- Hold mortgage originators and underwriters accountable for bad loans.
- Make the company that bundles mortgages into CDOs and MBSs responsible for the first losses on derivatives.
Of course lending standards are very tight right now, but markets have a pretty short memory and without regulation designed to rein in the screwing of naive of consumers, housing bubble part 2, second verse same as the verse, will be an inevitability.
Reader Comments (Page 1 of 1)
3-16-2009 @ 8:27PM
erik said...
Are you KIDDING ME!?!?!?!? Barney Frank is one of the people almost single handedly responsible for the mortgage crisis we're currently in!!! If you don't believe me, youtube cspan's following of the fannie mae and freddie mac debate in 2004.
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3-16-2009 @ 8:56PM
Wm. E. Hayden said...
Barney Frank can't hit his ass with both hands. Some one elses perhaps. The USA is in a world of hurt if this is an example of what we elect.
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3-16-2009 @ 11:01PM
vince demarco said...
Round up the usual suspects!Barney Frank is the sole person holding the most (95%) blame for the destruction of the worlds financial markets. After holding a gun to the heads of banks,forcing them to loan any amount of money,any idiot,would want,irrespective of weather they had a job or not,he is upset that the banks god rid of that paper as fast as they could.Now,he is back at it again with the recent comment "now we can spend some real money".Is the American public so stupid that they have not yet figured this guy out yet?
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3-17-2009 @ 10:28AM
Lisa said...
Talk about giving the inmates the keys to the asylum. Yikes.
Barney Frank should be in jail.
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