These too, shall come back!
I’m sure Wall Street has been tipped off prior to this and they’re already front and center formulating a new exotic product to hit main street. Oh and lets see who’s the first government official that stands behind this product.
Watch how this is done: Eddie Murphy’s “The Distinguished Gentleman” is by far the most accurate movie about procedure, lobbying, and the House of Representatives
HuffPO-
It took awhile, but more than five years after a wave of failing subprime loans wrecked the American economy, regulators have instituted new rules that prevent lenders from offering prospective buyers the worst types of mortgages.
The rules, imposed by the Consumer Financial Protection Bureau, force lenders to do something they actively and intentionally avoided during the build up to the mortgage bubble: determine if the person they were loaning money to buy a house had the ability to repay that loan. So no more of the “no doc” or “liar’s loans” that failed in epic numbers. The interest-only loans that blew up when the market started to tank are also outlawed.
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Only a very low percent of the loans were liars loans. The propaganda taat honmeowners lied and are dead beats is just that propaganda. Definately liars loans and riskie loans should never be allowed after this disaster, but to blame this disaster on liars loans is absolutely absurd. It is the bad criminal behavior of the banks that caused this financial disaster, The the use ot the HAMP program to litterally tell homeowners to default for three months promising mod loans, and or approving mod loans for five to ten months , then coming back and telling the homeowner they were now unaproved therefore the mod payments were partial payments now and litterally driving homeowners into defaul, and raising insurance preiums on them, all with the intent to drive the homeowner into defualt are the criminal acts by the banks to steal tlhe wealth from Amreiocans, the investors who really had the money and the homeowners pension funds, and lastly the houses. Were all a greater crime than the small percentage of actual liars loans. That is propaganda.
Shoud have added the liars were the banks. The banks did the lying. And were capable of catching any homeowner who would have done it themselves. The banks not only did it they pushed it and wanted defaults to make profits on the stock market. Bidding against the defaults and their own clients. http://en.wikipedia.org/wiki/Wall_Street_and_the_Financial_Crisis:_Anatomy_of_a_Financial_Collapse
This doesn’t help consumers – this is another attempt at immunity for Banksters. It’s designed to limit pesky homeowner lawsuits, for the next bubble explosion. The only way they blow another bubble is with new fraud and more predatory lending. More new home sales are doomed to foreclosure some years later. The only way to get “lenders” to behave is to ensure they lose badly when loans fail. You know, like in an actual free market. This is Government at it’s worst, the CFPB isn’t protecting consumers.