Here's a shocker! According to an article in the CU Journal... members now will have to show their ability to repay the loan under new regulations. Gee, what a novel idea! Who would have thought that the ability to repay a loan would ever enter into the decision process? Perhaps that's why nobody could do what Countrywide did:
WASHINGTON – Lenders would be required to make sure prospective borrowers have the ability to repay their mortgages before giving them a loan, under a proposal released by the Federal Reserve yesterday.
Perhaps if they enforced the regulations and "safety and soundness" issues at the proper time, we wouldn't have been saddled with assessments going forward for the next 10 years (or so).
Amazing that things got so out of hand that they would have to make a regulation concerning this issue.
But, it's OK because "everyone was doing it"; right? Right? And some wonder why folks are so upset!
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