Mortgage Rate News

One of the hottest issues being debated right now is how much the government should do with regard to fixing the mortgage loan business. Fed Chair Ben Bernanke has offered some assistance, and has said that rate cuts may be in order, but he by and large is calling on the mortgage loan industry to get creative to fix itself.

Others aren’t so sure that the mortgage loan industry can be trusted to fix itself. Congress is right now considering whether or not to impose a comprehensive bill that would lead to better lending practices, and require greater transparency throughout the mortgage loan process. Inman News reports on the two sides of the mortgage loan industry debate:

“A comprehensive consumer advocacy driven predatory lending bill is not the answer,” Rep. Tom Price, R-Ga., said in prepared remarks submitted for a Congressional hearing today. “It is tantamount to fighting the last war and will only make the markets more skittish as they have to react to new underwriting standards and liability issues making the situation worse, not better.”

But others said Congress should act to make sure mortgage lenders don’t take advantage of borrowers by offering them complex loans they don’t fully understand, and also provide more help to those who already have such loans.

A combination of factors led to the current mortgage loan industry crisis. The mortgage loan business became lucrative, and poor lending practices by financial institutions made sure that people who perhaps should not have got mortgage loans did. But borrowers themselves also share the blame. In a culture where we can’t seem to wait for anything, too many have been to ready to buy things they can’t really afford.

Tags: mortgage loan industry, mortgage loan business, home mortgage loan, mortgage loans,
home mortgage, Fed chair Ben Bernanke, Congress home mortgage debate