March 13, 2008

Seven years too late, Hank Paulson calls for nationwide licensing of the slimy and corrupt mortgage broker "profession". Thanks Hank. Bit too late.


Where was the Bush Administration, the Plunge Protection Team and the Fed when we needed them? Day late and a few trillion dollars short I'd say.

Talk about showing up at a bank robbery after the crooks have already fled..

Paulson says US blueprint calls for stronger oversight of mortgage lenders

Treasury Secretary Henry Paulson said Thursday that a presidential working group wants stronger regulatory oversight of mortgage lenders to avert the kind of credit crisis that is dragging the economy down.

In a new Bush administration initiative that Paulson said is not about "finding excuses and scapegoats," a presidential working group set up in the wake of the 1987 stock market crash is calling for a series of actions designed to avert the kind of chilling housing and credit crunches that are threatening to throw the nation into recession - if it isn't there already.

One recommendation calls for federal and state regulators to strengthen oversight of mortgage lenders and another urges state financial regulators to implement strong nationwide licensing standards for mortgage brokers, according to the group's report, released Thursday.

10 comments:

Anonymous said...

PPT has lost control

Anonymous said...

The cows have all left the barn and steaks are being grilled all over town. They better hurry up and close the barn door.

Anonymous said...

No licensing is needed. Just have banks loan their own money and stop subsidizing housing, the problem then solves itself.

Also, make brokers legally liable for false information.

Mark Twain said...

Keith,

There would have been no corrupt mortgage brokers if there wasn't corrupt money flowing from the Federal Reserve.

Easy money debauches everyone and everything.

This is smoke and mirrors from Paulson. He knows the govt created this whole problem. Specifically easy credit.

The corrupt mortgage brokers, realtors, subprime liar loans, etc... were just the SYMPTOMS.

Anonymous said...

Did you see how nervous that clown Paulson was at that press conference? I thought he was going to have a heart attack.

Ohio Loan Officer said...

Once again, they target Mortgage Brokers. What about all the corrupt Loan Officers at the big banks? We have repeatedly pointed out blatantly corrupt loans that the banks have been pulling to regulators but all they tell us is, "Banks are already under Federal regulation. They already have a higher level of scrutinization". Well where is the scrutinization?

Anonymous said...

I don't understand how they could not have been licensed. In 1977 I got a realtor's licence, after weeks of study and a state exam. To get a broker's license you had to work as a realtor for 3 years, more education and an other exam. As it turned out, it wasn't for me and I quickly dropped out of that career, but we had to understand pertinent law, fiduciary responsibilites, contracts, mortgage law and rights. Nothing profound, but we had to work for that license. And people lost their licenses both broker and sales person for misbehavior.

So what's with issuing mortgages with no background? My God, the ignorance level has risen in regard to some very important basics of our financial lives. No wonder it's easy to be snookered.

Anonymous said...

It doesn't matter, this won't work. Realtors are licensed too you know. The mortgage broker profession will sort itself out once the lenders make borrowing as hard as it should be. 100% financing for a home was just silly.

Anonymous said...

Wow. A Republican appointed Secretary of Treasury calling for Democrat style regulation and government enforcement. Pretty ironic huh?

What next, Paulson calling citizens to vote for Obama??

Dumb Dumb want Gum Gum said...

He just now figured out that when an ex-Burger King employee is writing loans for $500,000 to an illegal there may be a problem with that? Damn, what an administration. Sounds vaguely like the rhetoric they threw out when it was "discovered" that there were no weapons of mass destruction afterall. That same "deer in the headlights look". Of course, like the war, the damage was already done, and the carnage had begun. And there is Bush "Fortunately we caught this problem early before it turned in to a recession" Wow, that is genius, George. What an idiot.

Unbelieveable.