By Reuters? (Kinda looks like he enjoys it.)
Posted on 05/08/2009 6:48:19 PM PDT by Libloather
House votes to outlaw 'liar loans'
Created: 05/08/2009 2:30 PM
WASHINGTON (AP) - The House voted Thursday to outlaw "liar loans," ballooning mortgage payments and other bank practices that lawmakers say preyed on consumers who couldn't afford their homes.
The proposal, by North Carolina Democratic Reps. Brad Miller and Melvin Watt, is one of several that Democrats are pushing to tighten controls on an industry that critics say undermined the economy by underwriting risky loans, then passing them off to investors.
The bill passed 300-114, with many Republicans contending it would limit consumers' options and restrict credit.
Democrats said it would ban only the most egregious lending practices and wouldn't keep most people from getting a mortgage they can afford.
"The simple fact is that our laws and enforcement efforts did not keep pace with the complexities of a global economy and a financial industry where the greed of some trumped common sense," said House Speaker Nancy Pelosi, D-Calif.
Under the bill, banks offering other than traditional fixed-rate mortgages would have to verify a person's credit history and income and make a "reasonable and good faith determination" that a loan can be repaid. This provision is aimed at eliminating high-risk credit lines that became known as "liar loans" because they required little or no documentation.
**SNIP**
Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said he plans to take up in June a broader overhaul of the nation's financial regulations. That bill is expected to decide who in government should monitor risk across the financial system and who should be able to shutter firms whose failure poses too much risk.
(Excerpt) Read more at kstp.com ...
Illegal aliens LIE? Noooooo...
If I hear the word “global” again in an explanation of why this is happening, I think I’ll scream! We are our OWN country!
Was not the whole purpose to make money for some Congressman’s
lover, and another’s wife?
Should Botox Gran really be the head of the anti-lying and anti-greed lobby? (Anti-common sense I can understand...)
So no houses or land will be sold to illegal aliens? Is this wishful thinking I'm indulging in?
I lie a lot too. And remember, according to Obama & the Democrats, every time I lie I’m the victim of the person I’m lying to.
I’m oppressed.
You're lying.
Actually, I think this is good news cloaked in glorious liberal cloth. An admission that “2% is enough-Franklin Raines” was wrong, while blaming it all on “Wall Street Greed”.
By Reuters? (Kinda looks like he enjoys it.)
Someone like Pelosi has the audacity to preach about common sense?
and a financial industry where the greed of some demands of poverty pimps, race hustlers and liberal politicians trumped common sense,"
Fixed it.
Exactly. Which is why NOT probing him now is a punishment. "Now be good, Barney, or you're not getting a probing tonight!"
It's slang. It's a misnomer. It's a stated income loan for the self employed who cannot verify income through W-2s.
Before the federal income tax and withholding ALL mortgage loans were "stated income."
Stated income loans only became a problem when FannieMae and FreddieMac -- under the dictates of congress -- required lenders to accept "stated income" loan applications from w-2 wage earners or face the accusation of "discrimination" and violation of fair lending practices.
These clueless animals are now running your banks.
Man, these guys are clueless. In order to get a loan today you must have at least a 620 FICO score, verifiable income, two years in the same employment field and ratios can’t be out of whack. “Liar loans” went out several years ago.
“Man, these guys are clueless. In order to get a loan today you must have at least a 620 FICO score, verifiable income, two years in the same employment field and ratios can’t be out of whack. “Liar loans” went out several years ago.”
True - for today. But these loans should have NEVER been made anyway, as the banks always knew they could not be paid back under the terms they were made (i.e., the only hope for banks was rising prices leading to refinancing). Yea, we can blame the Democrats for encouraging these loans...but it was NOT the Democrats making the loans. It was the lenders.
My point being that if a practice is not outlawed, the lenders will start doing it again, the moment they think that they can get away with it...which is not right now, but will be in the future if these animals are left to themselves.
I’m glad to see the door being shut (hopefully).
The reason it won’t happen again is the investors would be hard to find. A lot of them knew what they were getting into but most did not. They didn’t know the underwriters were signing off on every loan app that came across their desks. There is on money available on these type loans and the guidelines on legitimate loans are tighter than they’ve been for years.
What I’m saying is a couple of democrats introduce a new law forbidding making these loans 2 to 3 years after the practice stops?
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