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Loan predators remain safe

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

If there was ever a time when federal regulators should be knocking heads it's now. The plain truth about the subprime meltdown is that investors got greedy and lenders began looking the other way. There's plenty of blame to go around but now the blame rests with those who should pass rules that stop the industry from manipulating the system. Final subprime underwriting guidelines were released recently by the patchwork of federal regulators charged with overseeing the soundness of our banking system. (See FDIC press release from June 29, 2007.) Guidelines aren't rules, they are suggestions. And they apply only to those lenders under jurisdiction of the federal agencies. Calling this a ho-hum approach is charitable. It was almost predictable that regulators would emphasize the need for even more arcane disclosures to ensure that consumers will receive information they need about the features of these loans. They didn't disappoint us. We're headed for more mandatory disclosures that a...