I love stuff like this. Let's remove all accountability from the public and place it in the hands of our goverment.

Fact of the matter is, most of the people who overspent and got in over their heads, will probably spend more time resarching their next flat screen tv purchase than walking through the loan specs that they signed on to with some of these ARM agreements.

Let's start putting the blame where it belongs..... with the consumer. No one twisted their arms, no one held a gun to their heads to sign these mortgages. They got greedy, plain and simple.

Setting aside regulation issues, you can't tar borrowers with the greed brush without also tarring the lenders. Just as it makes no sense to take out a loan you can't repay, it makes no sense to make that loan. It was easier than it once was for companies to forget that truism because they could immediately sell the loans to other people.

Lots of blame to go around, in other words.

I say the Fed should outlaw selling the loans. If you made the loan, you have to keep it for the duration. By making questionable loans, the banks turn a quick profit by bundling a bunch of known "loser loans" with a bunch of
"fair to middlin" loans and a few good ones for good measure and sell them off to get money to go make more money off unsuspecting borrowers and unwitting buyers. The middle man makes out. My credit union doe snot sell their loans, they make them and they keep them, or so I have been told and after 6 years, I am still with the same lender.