Dems take on mortgage meltdown (It's the economy stupid redux)

http://money.cnn.com/2007/08/09/real_estate/pols_play_subprime_blame_game/index.htm?postversion=2007 ^ | 8-13-07 | Les Christie

[Hydroshock]

NEW YORK (CNNMoney.com) -- In the wake of the subprime mess, Democratic presidential candidates are grabbing hold of the issue and offering their own solutions. And the problem, many of them say, lies with the mortgage broker.

Sen. Barack Obama has introduced legislation targeting fraud and predatory lending. John Edwards, the former senator from North Carolina, has said he wants to ban certain fees, establish uniform broker licensing standards and start a national database for disciplinary infractions.

Current Mortgage Rates

And last week, Sen. Hillary Clinton came out with a plan to address lending abuses. One of its main policy planks was to "crack down on unscrupulous brokers."

The National Association of Mortgage Brokers (NAMB) reacted to Clinton's statement immediately, criticizing her for singling out small business owners and calling for wider scrutiny.

"The entire mortgage system needs to be examined from stem to stern," the NAMB said in a statement, "from the home shopping phase, bankers, brokers, and lenders, all the way to Wall Street and the rating agencies."

[Phantom Lord]

Why shouldn’t someone consider an ARM? For a portion of buyers, going with a fixed rate mortgage is the wrong decision.