Posted by: Pat Enomoto
Comment: #1
Mon Jan 28, 2008 4:19 PM
We must not forget the term predatory lending as we happily bounce around "sub prime". As a realtor in the Midwest for the past 25 years, I see a very complex problem stemming from lack of over sight of mortgage lenders. All mortgage lenders need to be licensed and regulated as any other business who wishes to be called professional and offer services to the public. These programs were created to get more money out into circulation, no matter the ultimate cost to the public and the economy. I have written congressman and reporters for several years and never received a response. Many people were targeted who did not understand the lending process and many loan terms were changed at the closing table. These buyers were just thrilled to be getting their own home and having the rate changed from 8% to 11% at the table did not mean much to them, that is until the payment came due. Of course there were the ridiculous teaser rates of 4% etc. Again, business wise buyers would not have accepted these offers. Should we bail out now, NO! Should we close this door so this cannot continue to happen, Yes. Any "bail out" should only be what is absolutely necessary to keep the countries economy solvent. Like slavery, the Holocaust, child labor, all of the horrors in our history, it should not be allowed to happen again.
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