Quote:
Originally Posted by Riot
Good. Lending should be limited to legal and fair, above-board activities for both parties.
The banks are threatening, "if you regulate us, we'll limit lending, or move away from certain states."
Okay. Buh-bye. Other entities that will work within the stricter regulatory framework that will help prevent another financial crisis like the one you just caused by your unregulated activities will take your place.
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There is a point where too much regulation is not good for the consumer. As far as mortgage lending goes most good banks worked within the regulations and programs that were set forth by FHA, Fannie Mae and Freddie Mac. Some banks didn't offer Negative Amortization loans(even though all competitors were and they lost a lot of business and $ at that time). Now it is time to blame the banks for these issues even though the government along with Fannie and Freddie created them. It was the banks fault that the government wanted everyone to own a home. It was the bank's fault that the government along with Fannie and Freddie offerred no money down mortgages. It was the bank's fault that some customers used their home as a piggy bank. It was the bank's fault that some customers did loans that they couldn't afford, but told the bank they could. Where is the personal responsibility of the customer? The bank would give me a loan to buy a $60k truck if I wanted it. Does that mean that I should buy it just because the bank will give me the loan? People need to learn to take responsibility for their own actions and stop blaming others. If you made a bad financial decision you need to live with that. It happens. Life Sucks, move on. Illegal activities are different that strict regulation. Strict regulation WILL affect the consumer. The good banks will survive regardless and just pass on the costs to the consumer. What you fail to understand is that the pendulum has swung too far in the opposite direction and you want it to swing farther. Things needed to change and they have and they have drastically, but more and more regulation is not the answer. Personal responsibility is. Stop blaming others