Cleaning Up the Mortgage Mess
This is definitely a fight worth fighting:
It’s one of those below the radar things, but there’s a fight brewing between mortgage brokers and the rest of us over legislation. There’s legislation to outlaw something called “yield spread premiums” in which brokers are given a cut if they give borrowers crappier loans than the ones they qualify for. The thing is that most people don’t understand that their mortgage broker isn’t their pal who simply runs their credit score and gives them the best mortgage they qualify for, but is in fact someone who benefits from screwing them as much as possible. People just don’t think of their mortgage broker in the way they think about used car salesmen even though they obviously should.
It’s fucking ridiculous that Congress doesn’t stand up to the mortgage industry after they have ripped off millions of borrowers and are in the midst of destroying communities all over the country. Write your rep.
This is just a positive move all around. It’s good for Democrats to do something to clean up the mortgage system as the fallout sweeps through the nation on the eve of an election year, and it also happens to be the right thing to do — unless you’re a corporate whore who thinks the future of the party is in being a Republican hack with a “D” next to your name.
No names, please.
(photo by sfadden)