NO SUCH THING AS A STUPID LOAN OR A SILLY LENDER
If you missed it, they are all excited over at HUD about a new form, that has no enforcement mechanism and won't be required until 2010. (It's still a big deal, maybe a break in a multi-decade log-jam, even).
Meanwhile, everyone, Left and Right, is agreed that some form of debt-counseling helps improve mortgage loan performance. We voted federal money for it, in the past year, maybe twice.
Still, no one appears to study the affect of education (or jail?) on ... those doing the lending. It's an abstract we prefer to call 'structural market failure', I guess, related to 'mis-aligned' incentives. No culpability there.
The knee-jerk free-marketeers seem to believe that the appropriate penalty for lender silliness is their own bankruptcy, not discharge of their poorly conceived loans.
Tuesday, November 25, 2008
No Federal Money for Lender Education ...
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