Mortgage proposal gets chilly response

[InkAddict]

edit for link: http://www.daytondailynews.com/n/content/oh/story/news/local/2007/10/23/ddn102307mortgage.html

COLUMBUS — — Gov. Ted Strickland got a polite, but chilly response Monday to his request that subprime lenders voluntarily enter into compacts with the state to keep more Ohioans from becoming part of the continuing mortgage foreclosure crisis.

Instead, Ohio should join national efforts to achieve this goal or adopt a plan like one in Massachusetts, said a letter from the Mortgage Bankers Association and the Ohio Mortgage Bankers Association to Ohio Commerce Director Kimberly Zurz.


Strickland's proposed compact called on lenders to modify loans, identify and notify at-risk borrowers, waive late fees and penalties and take other voluntary steps.

The letter says the governor's compact is "well-intentioned" but "certain portions could actually hinder all parties from achieving the critical goal of home ownership preservation."

[peace13]

1. The banks will bleed every dollar they can

from their customers. Congress has given the banks the power, allowed them to let people borrow too much money and now we will pay the price. In the end people who have lived within their means will pay the cost and the banks will be sitting pretty. Good try Ted. Keep swinging the hammer. Peace, Kim

[geiger]

2. and it's not just the sub-primers that are in the position to screw people over

It's regular mortgage companies, too.

Loss of job or catastrophic health failure, those are the top reasons for default, not over-borrowing.

Part of me thinks this is a dishonest way to go about solving the problem. Hit them both head on.

[cmd]

3. Which parts hinder ALL parties?

Modifying loans? Gosh, the banks might lose some money; but wouldn't that be better than handling a foreclosure?

Identifying and notifying at-risk borrowers? Oops, a little late on that one, isn't it bankers? Methinks that should have been done before issuing a loan.

Waiving late fees and penalties? Horrors! Banks would definitely lose on that one!

Other voluntary steps? What part of voluntary is a bad thing?

[peace13]

4. Since the changes to the bankruptcy bill it doesn't' matter.

If I go bankrupt and incur bank fees, charges and foreclosure I will have to pay every cent back when I get back on my feet. It's a 401 K for the bank.

[cmd]

5. That's really disgusting

It will be more than a lifetime before we are able to reverse the damage done to Americans in the last seven years.