I always get a kick out of my Google gadget thingy that pops up news flashes. For example, I just saw an article titled "Stocks surge on home sales data, oil dip". Hmmm. Home sale data is looking good, huh? The article, citing the rosy-eyed NAR, states that the NAR's index for pending sales of existing homes rose in February...and was stronger than investors had been expecting. Well, that's good news. Full text: http://www.businessweek.com/ap/financialnews/D8O99NSG0.htm
Then within seconds, another article pops up titled "And Still More on the Subprime Fiasco". This article talks about preemption and increased regulation of mortgage lenders. If things are getting better, does Congress really need to get involved...or is that the usual pattern, to wait until something’s a mess and already fixing itself, then get involved? Full text: http://www.mortgagenewsdaily.com/432007_Subprime_Fiasco.asp
One thing I know from past experience is that the lending industry is already overly regulated. In fact, it's regulated to the point that borrowers are the ones getting hurt. Too many documents. Too many disclosures. Too much information that was originally designed to HELP the borrower. Truth in lending? Good faith estimate? These are just words that fail in practice. Is this mortgage meltdown actually good for the industry? Are the lenders and investors who SHOULD be heavily regulated because they can't operate with scruples being weeded out? Will we be left at the end of the day with the credible, honorable and customer-oriented lenders?
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