You have probably been reading a lot of news and commentary over the recently introduced HR3915 bill, also known as "Mortgage Reform and Anti-Predatory Lending Act of 2007." I have been busy flying and had decided not to add any input on this bill other than my previous post which I made even before the bill had a name. (See Barney Frank or Barney Fife? Who is better at Regulating Things?)
Well, the bill is scheduled to be reviewed by the House today, or at least soon, so I want to update you all on why this bill will destroy the industry, and ultimately harm the consumer. That’s right, many aspects of the bill can, and will, cause financial harm to the consumer.
Brian Brady hits many of the dangers associated with the bill. He also goes into the minds of the enablers. There are several others, but I think final issues if the bill is passed is summed up in Brian’s ending statement:
"95% of the American public will suffer for the greed of the fleckless few."
I posted about the Citizens for Financial Responsibility’s petition and wrote how the writers just don’t understand the bigger picture. Brian, in the second post highlights the letter the Center for Responsible Lender wants you to write in support of HR3915.
Even an editorial in the Times Digest (on my hotel door) pushes to get this harmful bill past and the writer proves his own ignorance of the potential damage the bill will cause.
While there has been some research and education on what needs to be done to eliminate "predatory lending" and other abusive practices, there is yet to be a bill introduced that "makes sense".
Why do I dislike the bill?
I do not care if more regulation is added and I am not even worried about "suitability" issues. I do not even care if I go out of business because of the bill, although I doubt that will happen as I will probably get more business due to less competition. Catch the last part of the last sentence? That’s right, less competition and that means more cost to the consumer. I dislike the bill because it will ultimately be harmful to the consumer.
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