You've gotta be kidding me.
I guess Barney Frank didn't get his checks from the REIC this year.
I wonder if he'll also introduce legislation that would allow mortgage companies to sue housing gamblers who lie on their mortgage applications?
Two words: Personal Responsibility.
Meanwhile, if this passes, there will be no more stated income BS, no more 5-times income loans, and lenders who go from reckless to overly-cautious. And that means significantly less buyers, even more unwanted supply, and prices will fall even further.
OK, sure, go ahead, pass this one. You have the HP endorsement Barney.
Bill Allowing Mortgage Lawsuits Expected to Stir Fierce Opposition
WASHINGTON, Oct. 22 — House Democrats introduced legislation on Monday that would for the first time let homeowners sue Wall Street firms for relief from mortgages that the borrowers never had a realistic chance of repaying.
Critics warn that the bill could chill and perhaps freeze a huge source of capital that has helped push homeownership in the United States to its highest level.
The legislation, introduced by Representative Barney Frank, Democrat of Massachusetts and chairman of the House Financial Services Committee, would require any mortgage lender to verify that the borrower has a “reasonable ability to repay” based on documented income, credit history and debt level.