Predatory Lenders' Partner in Crime

[moh malekpour]

Sorry if this article sounds a little political and I hate to post a political article but it is written by governor of New York, Eliot Spitzer. You make your own judgment

How the Bush Administration Stopped the States From Stepping In to Help Consumers

Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers' ability to repay, making loans with deceptive "teaser" rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.

Even though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers.

 

[Pamela Crowley (Florida)]

Wish I could say I'm surprised. I don't believe he acted alone... in fact, I'll bet there were quite a few that pushed and prodded him into that stance.

 

[Karl]

BUT as with most things this started prior to the Bush Administration. Just like Regan Trickle down Economics it takes a long time to see how things go. I believe some scandal was aroused about a place in AK long before Bush got in. was Bush part of the problem YES but no more so than others before him & The next one in will NOT, even IF they can come up with a solution see the results while they are in office. I'm not a rwal religous type guy BUT I think this problem needs something much more poweerful than our government to fix it.

 

[Pamela Crowley (Florida)]

All you need to do is look at the http://appraiserspetition.com/ that was started in 1998 or 1999 to see when this mess was getting on a roll.

I wish I could find a way to believe that our legislators in Washington weren't crooked in order to get into their positions.

 

[Lee Lansford]

Those with the money make the rules.

Our government is a government of special interests.

Consumers get relief when the cry is much too loud to ignore.

This situation is not specific to one of the two major parties more than the other.