Comments on: Great moments in predatory lending law

By: Ted

Ted — Tue, 17 Oct 2006 18:57:45 +0000

I’m skeptical about this law, but it’s too early to say that it’s decreased home sales 45%. If counseling is required, that’s going to cause a delay in sales, which means that a month-to-month window isn’t an apples-to-apples comparison — especially since it’s possible a lot of mortgages might have closed in the August rush to beat the deadline before counseling was required.

By: Deoxy

Deoxy — Tue, 17 Oct 2006 10:54:40 +0000

“In other words, it’s working.”

Unless you think 45% of all home sales in the area would have foreclosed (which is COMPLETELY ridiculous), it’s not “working” at all – it’s penalizing people who actually want to sell their own property, and penalizing people even if they could have afforded such a rate (as the lenders have simply left the market).

If that’s “working”, I’m sure communism “works” for you, too.

By: J.T. Wenting

J.T. Wenting — Tue, 17 Oct 2006 03:16:39 +0000

In other words, it’s working.
A lot of people who would otherwise have closed mortgages they really can’t afford from loansharks who would just confiscate the property at the first sign of trouble now decide not to get that mortgage and not to buy that property.

The brokers pulling out of course are those who would give mortgages (with crippling terms) to people with bad credit in the past, something many legitimitate banks and agencies would never do in the first place.