The Mortgage Manifesto!

Whos Fault Is It?

Thank you to www.americanmortgageeducatorsinc.com for this article. Tawney Warren is the author and one of the four consumer advocates that anchor this wonderful organization and help borrowers and homeowners nationwide. Thank you for your contribution:

Whose fault is this mortgage mess?  First of all, I don’t think it is a mess, I think it has become a catastrophe.  When one family loses the American Dream, their home, that is almost the most devastating event someone can live through besides the death or illness of a loved one.  Going through foreclosure beats your soul.  You lose all confidence in yourself and it can begin a chain reaction of destruction from loss of job, loss of friends, but loss of confidence is the worst.  If you still had your confidence, you’d feel that you know well enough what went wrong and you could pick yourself up and dust yourself off and do it again, only better this time.

Analysts have written their articles and pointed the finger at this person or that but, let’s look who has blame in this catastrophe.

How about the legislators for not requiring that loan officers in this country be educated and licensed.  After all, they are selling a family the largest debt they will probably have in their lifetime.  Why is it considered acceptable that they only present a consumer with one option?  (More)

Government is getting involved in the Mortgage Meltdown even more!

Thank you from FDIC and the Financial Services Committee:

Statement of Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation on Recent Events in the Credit and Mortgage Markets and Possible Implications for U.S. Consumers and the Global Economy before the Financial Services Committee, U.S. House of Representatives; 2128 Rayburn House Office Building

Chairman Frank, Ranking Member Bachus, and members of the Committee, I appreciate the opportunity to testify on behalf of the Federal Deposit Insurance Corporation (FDIC) on the credit and mortgage markets. Events in the financial markets over this summer present all of us here today -- regulators, policymakers, and industry -- with serious challenges. The FDIC is committed to working with Congress and others to ensure that the banking system remains sound and that the broader financial system is in position to meet the credit needs of the economy, especially those of creditworthy households currently in distress. In my testimony today, I will discuss the developments that led to the current market disruptions, report on the condition of the banking industry, and describe ways to address some of the lessons we have learned from the events of recent months.

The Roots of the Current Problem (to be continued below...)