here is a list of banking laws over the years

hmmm

Modified financial institution regulations, including regulations impeding the flow of credit from lending institutions to businesses and consumers. Amended the Truth in Lending Act and the Real Estate Settlement Procedures Act of 1974 to streamline the mortgage lending process.
 
uscitizen said:
hmmm

Modified financial institution regulations, including regulations impeding the flow of credit from lending institutions to businesses and consumers. Amended the Truth in Lending Act and the Real Estate Settlement Procedures Act of 1974 to streamline the mortgage lending process.
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Ah so you selected this one:

Modified financial institution regulations, including regulations impeding the flow of credit from lending institutions to businesses and consumers. Amended the Truth in Lending Act and the Real Estate Settlement Procedures Act of 1974 to streamline the mortgage lending process.

Amended the FDIA to eliminate or revise various application, notice, and recordkeeping requirements to reduce regulatory burden and the cost of credit. Amended the Fair Credit Reporting Act to strengthen consumer protections relating to credit reporting agency practices.

Established consumer protections for potential clients of consumer repair services. Clarified lender liability and federal agency liability issues under the CERCLA. Directed FDIC to impose a special assessment on depository institutions to recapitalize the SAIF, aligned SAIF assessment rates.
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Rather than this:

Requires the RTC to adopt a series of management reforms and to implement provisions designed to improve the agency's record in providing business opportunities to minorities and women when issuing RTC contracts or selling assets. Expands the existing affordable housing programs of the RTC and the FDIC by broadening the potential affordable housing stock of the two agencies.
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I know it sounds so innocuous, but it directly effects the housing lending. They simplified it here, but this was the beginning of the mess we are in... The law specifically required and reset lending requirements so that people who could not previously get loans could get "imaginative" loans...

You know those great ones with teaser rates, etc...
 
Gramm-Leach-Bliley Act of 1999

"Makes significant changes in the operation of the Federal Home Loan Bank System, easing membership requirements and loosening restrictions on the use of FHLB funds."

Agree with Damo on where the current mess started. The above portion of Gramm-Leach-Biley compounded the problems. Which is why Fannie Mae and Freddie Mac are in trouble right now.
 
Why was nothing done to curb the effects of these laws in a timely manner when experts were warning of the repercussion for years now?
 
Desh said:
Why was nothing done to curb the effects of these laws in a timely manner when experts were warning of the repercussion for years now?
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Because the idiot politicians wanted to keep cheering about the number of Americans that owned their own homes.
 
uscitizen said:
Business were making money off of them. causing less profit ? Blasphemy.
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More like the consumer kept borrowing money from the equity in their homes and spending it, thus boosting the economy. Plus... "More people own thier own homes now than ever before!!!! YEAH!!!"
 
So You are glad our congress of the last few years did nothing to abate some of the problems in the economy we are facing?
 
Superfreak said:
More like the consumer kept borrowing money from the equity in their homes and spending it, thus boosting the economy. Plus... "More people own thier own homes now than ever before!!!! YEAH!!!"
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Yeah that too.
several reasons were involved most of them related to profit and a falsely inflated economy.
 
It just is an example of the type of economy you get without good stewardship of the industries.They will do what makes them money in the momment and ignore the long term.
 
Desh said:
It just is an example of the type of economy you get without good stewardship of the industries.They will do what makes them money in the momment and ignore the long term.
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yep here is a bit about the aisian stock market downturn.

"American financial mismanagement has brought us to this economic meltdown," said Francis Lun, a general manager at Fulbright Securities in Hong Kong. "Asian stock markets are all suffering; nobody has escaped."

http://biz.yahoo.com/ap/080116/world_markets.html

and people say we should let businesses regulate themselves....
 
uscitizen said:
I think it is a combination of those....
several little pieces are easier to slip in than one big one.
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Definitely. And the fact that each time they had the noble purpose of making it "more equal" so that groups of people were not rejected that otherwise would have been.

You might remember both Clinton and Bush bragging about record numbers of <insert group here> now own homes! It is these laws that brought that about. It sounds so GOOD, to wind up so very bad.
 
Desh said:
So You are glad our congress of the last few years did nothing to abate some of the problems in the economy we are facing?
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No Desh, I am pissed that they did nothing. I am just explaining their "reasoning". Bottom line though, it is more the fault of the consumer and lender than it is the politicians. Yes, there were some shady deals going on and those that used unscrupulous tactics should be prosecuted. However, I bet the vast majority is simply individuals borrowing more money than they could afford to pay back. They assumed home values would keep going up or that interest rates would remain low. The lenders are to blame for allowing them to borrow more than they could afford to repay should rates rise.

In the end, it appears we do need regulation that states....

If you do not qualify for the 30 year fixed rate on the property, you are not allowed to get the loan. If you do qualify, THEN you may CHOOSE an ARM if wish.
 
Yeap but they usually end up being the pawns and nto the profiteers.

If it truely raised all boats then there would be no problem huh?
 
Superfreak said:
No Desh, I am pissed that they did nothing. I am just explaining their "reasoning". Bottom line though, it is more the fault of the consumer and lender than it is the politicians. Yes, there were some shady deals going on and those that used unscrupulous tactics should be prosecuted. However, I bet the vast majority is simply individuals borrowing more money than they could afford to pay back. They assumed home values would keep going up or that interest rates would remain low. The lenders are to blame for allowing them to borrow more than they could afford to repay should rates rise.

In the end, it appears we do need regulation that states....

If you do not qualify for the 30 year fixed rate on the property, you are not allowed to get the loan. If you do qualify, THEN you may CHOOSE an ARM if wish.
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The problem is, the new regulation was created so those who couldn't afford the loans could get the loans in the name of "equality" and so some few politicians could be proud of the record that groups that before were lower on average now had "record numbers" of home owners. Specifically the law created the problem itself...
 
Desh said:
Yeap but they usually end up being the pawns and nto the profiteers.

If it truely raised all boats then there would be no problem huh?
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It has nothing to do with raising all boats. Bottom line, not one consumer is FORCED to buy a house. Forced to sign a mortgage that they do not understand. Forced to take out equity loans on their home for new cars, flatscreens etc.... They are equally culpable with the lenders. You and I have a responsibility when we borrow money to understand the terms in which we have to pay that money back.

Again, this is not to suggest that there aren't any shady lenders. There are... and they should be prosecuted. But to act as though shady lending practices are the main reason so many people are in homes they can no longer afford is ridiculous.
 
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