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“Americans For Fairness in Lending” Gets on My Nerves!
By JLP | September 20, 2007
Yesterday I received an email from a PR person for Americans for Fairness in Lending with an attached copy of their Reporter’s Guide (PDF). Although I understand what the AFFIL is trying to do, their message comes across as:
“You Americans are SO STUPID that we have to have more legislation to save you from yourselves!”
For example, check out this paragraph from their guide (emphasis mine):
Mortgage borrowing is a complicated process, and consumers need and deserve to be protected. Just as supermarkets are prohibited from selling poisonous food, borrowers should be protected from toxic mortgages that have a one-in-five chance of choking them. Borrowers should be able to trust that lenders will not sell them loans they cannot afford, and that our government will protect them against deceptive and unfair lending practices. Neither assumption is currently accurate. This lack of lender responsibility and government oversight needs to change.
This is so ludicrous that I don’t even know what to say! Can’t borrowers figure out for themselves what they can and cannot afford? Not ONCE does their Reporter’s Guide mention personal responsibility - NOT ONCE! This can only leave us with the impression that this crisis is 100% on the shoulders of the lenders.
Now, before you misunderstand me, I’m am not supporting the lenders. I know that they created lots of crappy products that should have NEVER been used in the first place. And yes, there were brokers who did underhanded things. For that, I do think changes need to be made. I would just like to see less coddling of the borrowers, who were just as much to blame for this crisis as the lenders were.
Anyway, I urge to read their Reporter’s Guide. What do you like/dislike about this guide?
Topics: Housing Market, Mortgages |