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The Fed: Now a bad parody of itself
Thursday, March 27, 2008
According to this report in the Associated Press, the Federal Reserve is now bolstering confidence in the mortgage lending market by proposing sweeping new rules:
It also would prohibit lenders from engaging in a pattern or practice of lending without considering a borrower's ability to repay a home loan from sources other than the home's value. The proposal would curtail misleading ads for many types of mortgages and bolster financial disclosures to borrowers.Come on AP, is this really you or were you invaded by writers from The Onion?
"Substantial anecdotal evidence indicates that failing to verify (a borrower's) income invited fraud," said (Fed Governor Randall) Kroszner, who has been the Fed's point person on the consumer protection provisions.
4 comments:
Wow, I haven't looked at The Onion for some time now - their videos are pretty good.
Check out: Diebold Accidentally Leaks Results Of 2008 Election Early
The Diebold vid is a classic. Is it just me or did it take anyone else a few minutes before they realized it was, in fact, a parody? The scrolling ticker has some lovely gems, in case you missed them. :-)
P.S. Live free or Die Bold!
(shame that doesn't carry the same punch, now that Diebold's changed their name)
I wonder if defense contract UTC will succeed in yet another one of its attempts to take over Diebold:
http://tinyurl.com/2vgr2y
Wha...me worry?
I can propose additional criteria:
- Ability to save out of current income (income alone does not indicate ability of payment)
- The borrower should be able to pay off the loan before he/she turns 60.
- Should have job insurance coverage. New insurance industry which provides payment when borrower loses income.
- HELOC should not be based on the market value of the house but can only be drawn from payments made by the borrower towards principal.
- Let us just make sure the real estate industry goes dead for good and never recovers out of credit deflation drug that we injected.
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