What law(s) in congress created this current mortgage banking meltdown disaster?Is any particular lawmakers or committee in the U.S. Congress largely to blame for this failure in judgement and the lack of adequate oversight and accountability. Most of all, who has left the "crime scene" with the gold and gave the garbage loans to Freddie Mac and Fannie Mae, thus, the taxpayers and a $10... | |
Its the fault of the mortgage brokers. For getting people into loans that are profitable for banks but unaffordable for the people. We need regulation in that industry.
People bought homes they couldn't afford. It's their fault. It's the same mentality that causes people to run up huge credit card charges. Live in the now, buy whatever you desire, and worry about how to pay for it all some other day. Unfortunately for them, a $300K mortgage isn't as easily managed as $20K worth of credit card debt. They default on their loans and everyone else is left with the bill. I'm not saying the mortgage brokers didn't manipulate the system, but the buyers should have been more realistic regarding a market that was clearly out of control.
It the lazy oversight of the Mortgage industry - this is in part the President for not leading, congress for taking a his non initiative and the final part is allowing the Mortgage Lobby to take enormous payment for it.
Banks will fail because of it and it will all somehow be blamed on the Clinton administration eight years ago...
The Gramm-Leach-Bliley Act of 1999.The act was written by Republicans Phil Gramm and James Leach and hidden in a larger appropriations bill that was signed by Clinton. Phil Gramm went on to work as a lobbyist for one of the biggest banks that benefited from the deregulation the bill created. Now, he is John McCain's economic advisor.
It may be more of a lack of laws and regulation. The riskiness of the loans being made were ludicrous.
Lending hundreds of thousands of dollars with no proof of income? How's that a good idea?
In the stock market, they require some backing of margins. This is essentially no backing of a margin.
Sounds obviously stupid and our lack of regulation allowed it.
The companies that risked it shouldn't be bailed out and then regulations should be put in place to prevent this kind of stupidity in the future.
You may wish to research the changing of freddie and Fannie charters under Clinton, "to allow opportunity for all" to be homeowners. Required considering factors other than credit score.
I think Bush vetoed a bill that passed in congress to help people stay in their homes just a year ago or something. He has to be the worst dumbest President we ever had. If McCain wins and dies( God forbid) we are looking at the same crap but Palin sits when she pees.
They repealed the ant-usury act. That's when all the greedy lenders went wild.
Notice all the thumbs down for no good reason. Do these people want a mortgage crisis or something?
The laws forcing mortgage lenders to lend to people with bad credit if they were minorities. Banks are afraid of turning down people with little income verification and poor credit if they are a minority. This has caused them give mortgages to people who aren't qualified. Of course, more than minority groups are being forclosed on, it's just that if they have to lower their standards for one group, they have to lower their standards in all groups.
Lack of oversight and regulation is what caused this
