According to an article in the Star-Telegram, the financial industry is gearing up to fight proposed regulations aimed to prevent a future foreclosure crisis and curb abuse of credit consumers.
The article said:
“Republicans and industry groups are railing against much of his proposal. They say there already are enough regulators policing the market and that holding those regulators more accountable would have prevented the current crisis. “Unelected bureaucrats will now decide what mortgages we can have. They can decide what bank accounts we can open. They may even decide whether or not we can be trusted with a credit card,” said Rep. Jeb Hensarling, R-Texas.”
Yes, we must hold mortgage companies accountable for the foreclosure crisis; but we must also create a safe environment for the American homeowner and credit consumer to conduct business and reduce the risk of default and avoid foreclosure . Many of these toxic mortgages which caused the foreclosure crisis were written in such a way that homeowners could not fully understand what they were getting into.
This is why many of them have fallen victim to foreclosure. Although the government has not released all of the details of the proposed regulations, one important feature of the proposal is to create a standard package of mortgage products that are simple, relatively safe and government approved. Hopefully, this proposal will allow homeowners to choose safer loans and reduce their exposure to foreclosure risk.