Good Timing

Sure I bought real estate during the crash and sold after. But at least I selected a mortgage before "we're from the government and we're here to help" makes all mortgages prohibitively expensive. The NYTimes Business Section carries a bylined piece today, Loan Industry Fighting Rules on Mortgages. I don't think the Times ever met a regulation it didn't like, but even they are sympathetic to the poor slobs who are going to try to buy a house after the Federal folks fix it.

As the Federal Reserve completes work on rules to root out abuses by lenders, its plan has run into a buzz saw of criticism from bankers, mortgage brokers and other parts of the housing industry. One common industry criticism is that at a time of tight credit, tighter rules could make many mortgages more expensive by creating more paperwork and potentially exposing lenders to more lawsuits.

To the chagrin of consumer groups that have complained that the proposed rules are not strong enough, the industry’s criticism has already prompted the Fed to consider narrowing the scope of the plan so it applies to fewer loans.

"Predatory Lending" is the greatest thing that ever happened to the poor in this country. It allowed them to reach out and purchase property and to access the equity in property they own. Sorry that bad choices were made, the good that was done certainly overwhelms the bad.

Economics and Markets Posted by jk at April 28, 2008 10:24 AM