Regulation of the financial industry should be an issue of Obamas first term in office.
USAs last financial fiasco wasnt due to the business cycle but was induced a climate to deregulation, and dependence upon self control and governments reluctasnce to police. In many cases the foxes were left to guard the hen houses.
Who chooses the collateral assessors of federally insured loans? Do they work for the financial institutions or the federal government?
Collateral assessors for federally insured loans should be federal employees or licensed contractors acting as federal agents. The assessment cost should be imbedded within the costs of applying for a government insured loan. Such assessors should be subject to criminal penalties for fraud or loss of license for failure to act with due prudence. We cannot afford to risk public funds upon determinations of assessors that are primarily agents of banks or mortgage companies. It is not the institutions money that is primarily at risk.
We should consider prohibiting a government insured loan from being divided, then bundled and resold. The law could specify that such division is prohibited for 10 years, or it could be prohibited the entire life of the loan. We learned the hard way of the problem due to loans being divided and bundled for resale. If theres a problem further on, no one owns the original loan. If it is financially feasible and advantageous to renegotiate the loan, no one has the legal right to do so.
Im opposed to Government Supported Entities, (GSEs) purchasing or selling non government insured loans. Thats the function of an investment bank. Im also opposed to federally insured banks acting as investment banks.
Im not opposed to our limits of federally insured loan amounts per individuals and their dependents or per individual buildings and/or land or real-estate. I advocate federally insured home loans limits should be modified to reflect the purchasing power of the U.S. dollar in the year the loan is made.
I would not be opposed to federally insuring a portion of the full purchase price if that portion of the loan was a first mortgage and had other superior rights to all other loans and claims upon the property.
Respectfully, Supposn
USAs last financial fiasco wasnt due to the business cycle but was induced a climate to deregulation, and dependence upon self control and governments reluctasnce to police. In many cases the foxes were left to guard the hen houses.
Who chooses the collateral assessors of federally insured loans? Do they work for the financial institutions or the federal government?
Collateral assessors for federally insured loans should be federal employees or licensed contractors acting as federal agents. The assessment cost should be imbedded within the costs of applying for a government insured loan. Such assessors should be subject to criminal penalties for fraud or loss of license for failure to act with due prudence. We cannot afford to risk public funds upon determinations of assessors that are primarily agents of banks or mortgage companies. It is not the institutions money that is primarily at risk.
We should consider prohibiting a government insured loan from being divided, then bundled and resold. The law could specify that such division is prohibited for 10 years, or it could be prohibited the entire life of the loan. We learned the hard way of the problem due to loans being divided and bundled for resale. If theres a problem further on, no one owns the original loan. If it is financially feasible and advantageous to renegotiate the loan, no one has the legal right to do so.
Im opposed to Government Supported Entities, (GSEs) purchasing or selling non government insured loans. Thats the function of an investment bank. Im also opposed to federally insured banks acting as investment banks.
Im not opposed to our limits of federally insured loan amounts per individuals and their dependents or per individual buildings and/or land or real-estate. I advocate federally insured home loans limits should be modified to reflect the purchasing power of the U.S. dollar in the year the loan is made.
I would not be opposed to federally insuring a portion of the full purchase price if that portion of the loan was a first mortgage and had other superior rights to all other loans and claims upon the property.
Respectfully, Supposn