When bankers whine

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As should be expected from Republican corporatists, those who profit most from screwing poor people through predatory lending are whining like banshees now that Congress is finally taking on their abusive practices. Their big new worry comes in the form of legislation being proposed by Barney Frank (D-Mass.), the chairman of the House Financial Services panel.

According to The Hill, Frank's bill builds on some excellent work done last session by two of North Carolina's most effective Congressmen, Brad Miller and Mel Watt.

As its core, the Frank legislation will draw from a bill sponsored by North Carolina Democratic Reps. Brad Miller and Melvin Watt in the last Congress involving “high-cost” or riskier mortgages. Such loans became subject to tighter consumer protections under the 1994 Home Ownership and Equity Protection Act (HOEPA). The Miller-Watt bill would have swept in a far larger category of mortgages under the act and, as a result, it attracted the strong opposition of the banking industry.

Frank declined to comment on the degree to which he would use Miller-Watt as a starting point for his bill, saying only that he is working closely with the two congressmen on the legislation.

It's nice to see the foundation laid by Brad and Mel being put to good use, but don't go thinking this will be a cakewalk for those fighting on the side of consumers, no matter how many of those consumers find themselves defaulting on mortgage loans this year.

Said one banking lobbyist, “If they put the Miller-Watt bill in there whole, as it was last year, it’s something we would have a lot of problems with.”

To which I say: We need to change the system so that no one actually gives a flip what some banking lobbyist has a problem with.

Curbing predatory loans won’t help people trapped in unaffordable mortgages, but it could prevent another binge in risky lending, proponents argue. The prospects for the bill, which faces steeper odds in the Senate, are likely to rise as conditions in the mortgage market worsen. New default data due later this month from the Mortgage Bankers Association will add “more fuel to the fire” and place “enormous political pressure on lawmakers to respond,” predicted Jaret Seiberg, a financial services policy expert for the Stanford Group.

Frank’s legislation will tighten underwriting standards and include language designed to prod states to enact minimum standards for mortgage originators involving disclosure and broker licensing, according to discussions that Financial Services Committee staffers had with lobbyists over the recess.

The path to ending this kind of corporate abuse is a long and complicated one that will require a fundamental change in the rights and privileges we have given to corporations. One stop along that path will be the end of corporate personhood, a change that even honest Libertarians should support wholeheartedly.

More on the issue here and here

Comments

My last five days

have been a total computer nightmare. Lost one extremely valuable file . . . gone forever . . . and spent 30+ hours screwing around with trying to get things fixed.

I almost forgot how to post!

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“Don't tell me what you value, show me your budget, and I'll tell you what you value.”
― Joe Biden

They're all snivelling because they screwed themselves as well

as lots of other folks. They're used to screwing others...they just don't like to get screwed themselves. The mortgage industry turned a blind eye to folk's credit scores and ability to pay and encouraged them to take out high interest, high risk loans, The Mortgage Btrokers then sold these loans to greedy and often unprincipled investors...who thought they were protected by clauses allowing them to sell back the loans if they went into default during about a two year period.

Wellll...whoops, when the loans started going bad the Mortgage Brokers just up and declared bankruptcy and left the funds boys holding a big bag of you-know-what. Now the fed is trying to bail out them out by lowering rates...but the bankers don't trust each other enough to continue loaning even overnight funds because they don't know who is holding a bundle of these loans and will go belly-up overnight.

I think there's still a lot of fit going to hit the shan...and I wanted out of it until the biggies we don't yet know about come out of the woodwork. Everyone in the market has paid the price for these assholes greed. And, many of them will get away fat and happy and ready to screw us again.

Go Brad and Mel..Go.!! Hope the Blue PIgs...er, Dogs will support you!

SE NC Dems

Stan Bozarth

Gee, a taxpayer bailout was just fine when

Neil Bush screwed up the S&L industry with the same shenanigans. Now the Chimp is saying taxpayers shouldn't bail out bad businessmen. (The earth's gonna open up and swallow me up for agreeing with the Chimp on anything.) The point is, it's pretty obvious that the Bush Crime Family's attitude is "we stole ours fair and square. If y'all were stupid enough to fall for it again then just f* ya."

Thanks, Brad and Mel, for your efforts. The predation needs to be stopped cold or we'll be going through this same needless sturm und drang from the same band of criminals every 15 or 20 years.

A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history.
Mohandas Gandhi

A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history.
Mohandas Gandhi

Boo-Yah, -A- !!

Said one banking lobbyist, “If they put the Miller-Watt bill in there whole, as it was last year, it’s something we would have a lot of problems with.”

To which I say: We need to change the system so that no one actually gives a flip what some banking lobbyist has a problem with.

What I would say:

You broke it; you bought it.

Barney Frank/computer ills

I am so lucky to have lived in Barney Frank's district for a number of years. He is really one of the good guys.

As for computer "issues" - I just went back to my old blogspot blog and found I have to transfer it because Google owns Blogger. I have tried several times to use the url to rescue it, but nothing works. This was a little blog that I diaried a trip to China on in 2005 and I hate that it is lost forever in the tubes. I wanted to revive it to post my current thoughts and stuff. Anyone good at this who could help an old geezer who is still pretty challenged with computers?