"Regulations limiting who you can make loans to, where not in effect under Clinton, and almost certainly will not be under Obama, and had Bush proposed and supported regulating such loans the proposals would have gone nowhere."
What? Are you trying to say that there are no regulations against making fradulent mortgages? What are you talking about?
Some of the 'poor' that were shuttled into subprime mortgages had some of their financial assets deliberately and fradulently excluded when they were considered for a regular loan. Do you actually have any idea what you are talking about? Really?
You are just talking through your ideological spleen without bothering to look at how the real world functions. This isn't about BELIEF, it is about REALITY. 30 years of idiotic, mindlessly stupid BELIEF in the garbage ideology of Reaganomics has created a massive financial disaster.
Eat THAT reality for lunch.
" Its not lack of regulation but rather bad regulation. "
To which it is easy to say: it is not too much regulation but rather bad regulation. To that the answer is DUH.
"As for regulations or laws against toxic substances in food, I support them, but we already had them, and they have nothing to do with the financial situation."
You make blanket statements against regulation as adding to costs without bothering to understand how regulations can reduce costs and lubricate business on a daily basis. That is why I brought up the melamine problem which is costing China big time.
If we had proper regulatory oversight into the housing market and the insurance market and the credit card market (still do not), etc. we would not have had a huge bubble and would not be suffering the consequences of it. I saw the housing bubble nearly 10 years ago. I saw no reason why housing prices should skyrocket after the Nasdaq implosion...it didn't make sense.
I'm not in the industry and I saw it. I'm sure people in the Bush administration saw it as well along with those in the financial industry. They simply ignored it and TAXED and STOLE as much as possible. They are still TAXING and STEALING all the way to inauguration.
You should be upset at them, that is your money as well.
------------
Mortgage Laws And Regulations To Protect The Consumer
Following is a brief description of the major laws and regulations meant to govern the mortgage lending process, protect mortgage borrowers, and govern the practices of financial institutions with regard to mortgage lending and protection of borrower financial information. All of the following are federal laws and regulations. Many states may have additional laws governing the mortgage process and protecting consumers.
Truth in Lending Act
Enacted in 1968, the Truth in Lending Act (TILA), which is part of the Consumer Credit Protection Act, is a federal law that sets forth certain written disclosure requirements. Disclosures required by the act include:
* Finance Charge - this is the amount charged to the borrower for a loan
* Annual Percentage Rate (APR) - this is the actual realized interest rate taking into account other items such as pre-paid interest (points) and certain other charges
* Amount Financed - this is the amount that the consumer is actually borrowing
* Total of Payments - This is the total amount of payments made over the life of a loan
* Total Sales Price - This is the total amount of a real estate purchase including the down payment and mortgage amount
The Truth in Lending Act also sets forth advertising requirements for lenders as well as rescission rights for consumers. The rescission rights in TILA allow consumers 3 business days to back out of a loan transaction.
For additional information on the Truth in Lending Act see: FDIC Consumer Protection.
Fair Housing Act
Also adopted in 1968, the Fair Housing Act prohibits discrimination in housing related transactions (purchase and rental) based upon race, color, sex, religion, national origin, familial status (with or without children), or handicap.
Fair Housing Logo
Lenders advertising their compliance with the act will display the Fair Housing Logo as well as the "Equal Housing Lender" slogan.
For more information see: Fair Housing--it's Your Right
Real Estate Settlement Procedures Act
Adopted in 1974, the Real Estate Settlement Procedures Act (RESPA) is another consumer protection law. It covers purchase loans, assumptions, refinance loans, property improvement loans, and equity lines of credit for one to four unit residential properties.
RESPA serves two functions:
1. It requires certain disclosures to borrowers
2. It prohibits certain practices that can drive up the closing costs of a loan
The required disclosures spelled out by RESPA include:
* Required at the Time of the Loan Application
o The Good Faith Estimate (GFE) of settlement costs
o A special consumer information booklet (for purchase transactions only)
* Disclosures Before Closing
o An Affiliated Business Arrangement (AfBA) Disclosure if there is a relationship between the lender and any other party providing services in relation to the loan
o A HUD-1 Settlement Statement
* Disclosures At Closing
o A HUD-1 Settlement Statement
o An Initial Escrow Statement
* Disclosures After Closing
o An Annual Escrow Statement
o A Servicing Transfer Statement in the event of transferring servicing for the mortgage
RESPA also provides further consumer protection by prohibiting kickbacks, fee-splitting, unearned fees in return for referrals for settlement services; prohibiting the seller from requiring the use of a certain title insurance company; and places limits on escrow accounts.
For more information see: Your Rights and the Responsibilities of the Mortgage Servicer or RESPA Statute Real Estate Settlement Procedures Act
Equal Credit Opportunity Act
Adopted in 1975, the Equal Credit Opportunity Act (ECOA) prohibits credit discrimination on the basis of sex, race, marital status, religion, national origin, age, or receipt of public assistance. ECOA regulates application content, acceptable and unacceptable questions, and verbal or written discouragement of an application.
For more information see: Facts for Consumers Equal Credit Opportunity
Home Mortgage Disclosure Act
Adopted in 1975, the Home Mortgage Disclosure Act (HMDA) requires that lenders report public loan data on both approved and denied loans.
For more information see: the Home Mortgage Disclosure Act (HMDA) web site
Community Reinvestment Act
Enacted in 1977, the purpose of the Community Reinvestment Act (CRA) is to encourage financial institutions (insured depository institution's) to help meet the credit needs of the communities in which they serve, including low- and moderate-income neighborhoods. The act requires that insured depository institution's be periodically evaluated.
For more information see: the Community Reinvestment Act (CRA) web site
Fair Credit Reporting Act
Adopted in 1978, the Fair Credit Reporting Act (FCRA) is designed to promote accuracy and ensure the privacy of the consumer credit information from consumer reporting agencies such as credit bureaus. The act has been amended numerous times since enactment.
For more information see: Fair Credit Reporting
New Homeowner's Protection Act
Adopted in 1998, the Homeowner's Protection Act (HPA), also known as the PMI Act, establishes rights for homeowners and rules for lenders regarding private mortgage insurance (PMI) cancellation. The act applies to mortgages obtained on or after July 29, 1999.
For more information see: Private Mortgage Insurance (PMI) New Law Requires Lenders to Cancel PMI
Fair Debt Collection Practices Act
Adopted in 1977, the Fair Debt Collection Practices Act requires that debt collectors treat borrowers fairly by prohibiting certain methods of debt collection. It prohibits unfair, deceptive, or abusive practices, including over-charging, harassment. It also prohibits disclosing consumers' debt information to third parties.
For more information see: Fair Debt Collection
Gramm-Leach-Bliley Act
Adopted in 1999, the Gramm-Leach-Bliley Act includes provisions to protect consumers' personal financial information. It has three parts pertaining to privacy requirements:
1. The Financial Privacy Rule - The financial privacy rule requires financial institutions to give their customers privacy notices that explain their information collection and sharing practices. The act also gives customers the right to limit some sharing of their information.
2. The Safeguards Rule - The safeguards rule requires financial institutions to have a security plan to protect the confidentiality and integrity of personal consumer information.
3. Pretexting - The Gramm-Leach-Bliley Act prohibits the use of false pretenses, including fraudulent statements and impersonation, to obtain a consumers' personal financial information.
For more information see: The Gramm-Leach Bliley Act |
