The foxes have taken over the henhouse before the birds could even fluff their feathers. From the Captain:
Now the CFPB [Consumer Financial Protection Board] has released its first set of mortgage rules, ostensibly to protect consumers — and conservatives may like what they see, at least conceptually if not organizationally:
Quoting the WaPo now:
The government is establishing new rules for mortgages that will make it harder for some borrowers to qualify but that are designed to prevent the kind of risky lending that nearly caused the housing market to collapse during the financial crisis.
The Consumer Financial Protection Bureau on Thursday will roll out the first of several far-reaching changes to the nation’s mortgage market, limiting upfront fees and curtailing practices such as interest-only payments that can leave homeowners stuck with unsustainable loans. The agency also will set standards for how much income a consumer must have to obtain a mortgage.
And back to the Captain:
In other words, the government is going to force lenders to stick to rules they liked before the government forced them to stop using them.
Well, sure. Staid old-line banks will like using the goverment to force potential competitors into line. And all the banks will like the new protection against red-lining type CRA lawsuits.
That is slick marketing by the Dems. If Republicans had announced they were going to reform banking by limiting access by poorer people, Dems would have howled. But the new Dem plan is to protect consumers by shoving them out of the bank lobby and back onto the street.