Industry NewsMortgage

Obama renews push for regulatory reform

New agency would have power over mortgage lenders

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

President Barack Obama marked the one-year anniversary of the collapse of Lehman Brothers by renewing his push for an overhaul of the financial regulatory system, which would include the creation of a Consumer Financial Protection Agency with broad power over mortgage lenders."This crisis was not just the result of decisions made by the mightiest of financial firms," Obama said. "It was also the result of decisions made by ordinary Americans to open credit cards and take on mortgages."While many took out loans they knew they couldn't afford, "millions of Americans" signed contracts they didn't fully understand that were offered by lenders who didn't always tell the truth, Obama said.A Consumer Financial Protection Agency is needed to protect consumers from loan contracts "designed to be unintelligible," and "hidden fees attached to their mortgages." Responsible lenders such as community banks that are "doing the right thing" ...