GOVEROTRAGEOUS: Consumer Financial Protection Bureau’s proposal

Friday, August 17, 2012

From: WSJ.com Editors <access@interactive.wsj.com>
Date: Fri, Aug 10, 2012 at 12:10 AM
Subject: WSJ NEWS ALERT: Watchdog Offers Mortgage Rules
To: reinkefj

__________________________________
News Alert
from The Wall Street Journal

A federal consumer regulator is expected to propose Friday the first set of national standards for the mortgage-servicing industry, which has been riddled with problems in the wake of the housing bust.

Under the Consumer Financial Protection Bureau’s proposal, loan servicers would be required to evaluate homeowners’ applications for loan-assistance within 30 days of receiving an application and would be barred from going ahead with a foreclosure until a final decision has been reached on a borrower’s application for help.

http://online.wsj.com/article/SB10000872396390444900304577579591114136230.html?mod=djemalertNEWS

 

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Talk about locking the barn after the whole herd has left the building!

I can’t wait to see the details of this.

Does it “charge back” the originator with the costs. IBM used to have a commission back out program when a Customer was “lost”. Needless to say, they lost very few Customers and, when they did, a sales team exited with the Customer.

Does it set standards for downpayments, ARMs, negative amortization, and balloons? In the “old days”, home mortgages were 50% down and 5 years max. Needless to say there were few if any defaults. Compare that to the NIJA no down no income no job applications of the subprome mess. Clearly these protections should apply to the Donald Trumps. He can stand the loss, but the “little people” need to be taught the lesson.

As a little L libertarian, if I have to have Gooferment, let’s at least try to pretend it can do something.

Argh!

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