Mortgage Industry To Face Massive Changes Under Regulators' Plan; Homeowners, Investors Better Prot

huffingtonpost

Federal regulators and the top law enforcement officers in all fifty states are eyeing big changes to the dysfunctional home loan industry. If these officials have their way, borrowers who take out home loans and the investors who buy them will work closer together and find common ground to minimize foreclosures, while the middle men who are supposed to be performing that job will see their power diminished.

That's the takeaway from a 27-page proposed settlement agreement a coalition of all 50 state attorneys general and five federal agencies sent last week to the nation's five largest home loan firms. The document details how mortgage companies should treat borrowers who fall behind on their payments.

It's the opening salvo in what will be a months-long negotiation between the nation's largest banks and the officials who oversee them to settle state and federal claims that they abused borrowers and illegally foreclosed on homes.

This is good news. Finally the banks who were major contributors to the world financial crash are being reigned in. The corrupt mortgage industry and the unfair practices which have allowed homeowners who were trying to pay their mortgages in good faith to be foreclosed on by the greedy banks is facing some curbs.

The banking regulations that have been gradually and systematically eliminated under all the presidents since Reagan are being put back in place.

There are many whose ideology will be challenged by this. Many believe that absolutely unfettered capitalism is the way to go. As we have seen since the 1980's, the income of the average working class family has only increased by about 3% in the last 30 years. Contrast that to the enormous gains for the top 1%. It is clear that their wealth has not been "trickling down."

It is about time the government is beginning to stand up to the greedy practices of the banking industry and Wall Street.

This isnt good news, any restructuring of the system will extend it for that much longer. It needs to collapse on itself and the manipulating and corrupt need to be dealt with and then create a system that is not enforced with a death sentence (police shooting at someone for not doing what they command or going to jail for assaulting a police officer to protect yourself from them).