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| Home Front Economy |
| Did Mortgage Bankers Lay Groundwork for this Crisis? |
| 2008-01-03 |
| It certainly appears so. From TFA: In October 2002, Ameriquest announced it would stop doing business in the state until the law changed. Shortly thereafter, Standard & Poor's Corp. announced it would no longer assign credit ratings to many mortgage securities containing subprime loans from Georgia. The ratings agency said that under the new law, such loans, if found to be in violation of the law, might carry legal risk, potentially tainting the securities. Without credit ratings, such securities are virtually unmarketable. The change raised the possibility that subprime lenders would simply stop making loans in Georgia. The subprime industry mounted a campaign against the Fair Lending Act. Within months, the Georgia Senate voted 29-26 in favor of a new law that eliminated for nearly all loans the tangible-net-benefit requirement opposed by the industry. The state House passed the law, 148-25. |
| Posted by:badanov |
| #1 The represenatives that approved this should be held accountable and they should be checked for free or low cost loans that they may have received as kickbacks. While many people made stupid decisions regarding their mortgages, and should not be rewarded for them with OPM (other people's money), the biggest failure was from our leaders to prevent obviously unfair usury laws. This is why we elect these useless bastards. To review the legislation presented to them and to, at the very least, do no harm. It's was never about capitalism, it was about robbery. |
| Posted by: Whomong Guelph4611 2008-01-03 11:18 |