Myths Spun by Lax Lenders
10th July 2007
Item. This is pretty rich.
It’s up to regulators and lawmakers to impose discipline when the market does not. The Federal Reserve, with authority over unfair and deceptive mortgages, should impose rules on all lenders — banks and nonbanks — deeming a mortgage unfair if it’s issued without evidence of a borrower’s ability to repay.
What goes unmentioned here, of course, is that if lenders require Fashionable Minorities to be good credit risks before getting loans, they get accused of “redlining”, and Jesse Jackson starts running his mouth again.