State of Washington is another one. It’s a good law. It penalizes lenders who make loans on over-valued houses.
It's a bad law. It rewards deadbeats who won't pay their debts.
A good law would punish reckless lenders by slashing their recovery and punish reckless borrowers by forcing them to take some responsibility.
It's a two-way street.
And it seems kind of silly to argue, as some do, that banks take advantage of people who don't know any better.
If a US Congressman cannot be expected to know any better, then all loans ever made are predatory.
It doesn’t penalize the lenders. It peanalizes people with good credit who might not now get a loan or who will pay much more for one.
It also penalizes lenders who make good loans, but get stuck when housing prices drop below the mortgage amounts and the borrower walks. True?
And lets irresponsible borrowers off the hook.