Obama, Durbin propose federal mortgage reforms
Wednesday, February 15, 2006
Sen. Barack Obama (D-Ill.) proposed a sweeping set of federal reforms Tuesday to combat mortgage fraud, ratcheting up enforcement and creating a national database of brokers who have been disciplined.That addresses outright fraud at the mortgage broker level.
It does not appear to address other problems that led to the current situation. Like offering sub-prime borrowers loans they would not be able to repay when the rates adjusted, lenders begging mortgage brokers for high interest loans to purchase so they can be packaged and sold to other investors, or packaging these loans into other financial instruments without clear documentation of their true value.
“That addresses outright fraud at the mortgage broker level.
It does not appear to address other problems that led to the current situation. Like offering sub-prime borrowers loans they would not be able to repay when the rates adjusted, lenders begging mortgage brokers for high interest loans to purchase so they can be packaged and sold to other investors, or packaging these loans into other financial instruments without clear documentation of their true value.”
Yes, you’re right.
So he is exhibiting a slippery Clintonian trait here.
He is trying to APPEAR like he did something significant about the BIG problem we are facing today and denying McCain credit for doing anything.
Except - what was more important?
Cleaning up Freddie/Fannie? - or keeping folks in houses when they couldn’t afford to pay on them?