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Mortgages News Friday 31st August 2007
Fine unscrupulous lenders, says ObamaDemocratic senator, Barack Obama believes that lenders who underhandedly pedalled subprime mortgages to millions of unsuspecting Americans should be fined, and the funds acquired, used to support embattled borrowers facing repossession of their homes.The senator, in contention for Democratic presidential candidacy, revealed these plans as the American housing market reels amidst the current credit crisis. There is growing discussion in Washington regarding tighter regulation of mortgage lenders and credit rating companies involved in the mortgage industry. Mr Obama blames the current government for not sufficiently regulating the lenders and the lobbyists that work on behalf of the lenders who obstructed tougher regulations. Figures from the Centre for Responsive Politics show that the top 10 mortgage lenders spent upwards of $185m lobbying Washington in opposition of tougher regulations. Wall Street banks including Citigroup, have also been lobbying over the issue of subprime lending. Mr Obama has made it plain in the past that lessening corporate influence in policy making is one of his core standpoints. The current administration opposes the suggestion, preferring a less radical response, including the expansion of a loan insurance scheme currently run by the Federal Housing Administration. Other Mortgages Recent News and Articles |
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