Fed To Crack Down On Abusive Lending Practices

AP:

People taking out home mortgages may gain new protections soon against shady lending practices as the Federal Reserve seeks to back even the riskiest borrowers, already hit hardest by the housing and credit crunches.

Rules expected to be proposed Tuesday would apply to loans made by all types of lenders, including banks and brokers. The plan from the Fed, which has regulatory powers over the nation's financial system, could be finalized next year. The effective date would be know then.

Read the whole story: AP

Comments

[thegreatgiginthesky]

08:52 PM on 12/16/2007

Years after millions of people have been raped and ruined by theiving lenders the Fed decides to step in and crack down. So how are they going to crack down? They going to print some more money to keep the predators in business?

[mrcontinental]

09:39 AM on 12/16/2007

Alright! And ONLY six years to late.

[VivaZapata]

07:26 AM on 12/16/2007

closing the barn door after ....

[dryfactoidobotanoid]

03:00 AM on 12/16/2007

kneel before your God, America.

http://www.youtube.com/watch?v=Nq7Li1MOF2Y
Ron Paul on Mad Money
December 14, 2007

[loki]

02:31 AM on 12/16/2007

Since when. As some here may have read, I have a friend whose son was once employed by one of the "abusive" lenders and had turned evidence of fraud and forging of bank statements and signatures (without borrowers knowledge)over to the feds. Their response was basically "So?" I guess if there is anything being done, its probably looking for a couple fall guys to make it appear that the Gov really gives a shit about it. Then the feds will quietly forget about it again, and the real criminals will continue to be good contributors to the Rethuglicans & Demorats

[themodernleader]

07:05 PM on 12/15/2007

Greenspan will go down as an opportunist first of all. He will also be known as a charlatan and moral vaccum. The childish doctrine of Anyn Rand, he followed maliciously, that is, the ends are justified by the means.
Additionally, as with Rand, he despised the regulations of FDR that were legislated to protect the people and Republic against another economic collapse and Depression.
Finally, without any hesitancy or sense of moral shame, he tapped the Treasury at every crisis which followed from his voodo, machivellian, montebank management of America's monetary system. He bailed out his banking friends when they erred; his disciple, Bernacke, is following in his footsteps in managing our economic system which has so declined that cover up of fraud and incompetence is no longer feasible.
Now we must all suffer for gross malefeasance and for masking the destruction of trade and fiscal deficit, public and private debt. Unbridled control of manufacturing, money and banking in private hands has brought our entire organization to a condition that we will forever regret.

[mmckinl]

03:42 PM on 12/15/2007

The horse is out of the barn, and Greenspan opened the doors...

Greenspan will go down as one of the worst , if not the worst Central Banker we have ever had and the reason is simple : His implicit and explicit proponence of deregulation.

By order, by Congressional testimony , by fiat Grreenspan has helped break the back of New Deal and subsequent Regulation that would have prevented or miniimized every one of the 6 major financial crises this country has faced over his tenure.

The currrent mortgage crisis would , indeed could never have been as bad had Greenspan implemented tighter loan underwriting standards that Congress had asked him to do in 1994. Ed Gramlich warned of this pending crisis early and Greenspan took no heed, defering to his banking cartel.

The heigth of cronyism and contempt for the public was his testimony in hearings about the 2005 Bankruptcy Bill where he accused people en masse of using bankruptcy as a dodge to financial responsibilty knowing full well that 90% off bankruptcies were due to job loss, divorce or health costs. He used the Bankruptcy Bill to backstop his reckless deregulated financial sop to his banking friends on the backs of the truly most disadvantaged class of debtor.

And now we have Greenspans' legacy , years of frustration, pain and loss in the housing sector and beyond.