Life After Dodd-Frank

Baggins - Financial education is in order. says:

Yes, gearing up for default servicing is always a wise move after periods of excess mortgage demand.  For regulations, no amount of regulation is effective, not more and not less.

If only consumers were financially educated themselves, there would be no need for regulation.

The only way to have a secure mortgage is to not have a mortgage in the first place, that’s the plain truth about debt and housing.  You don’t own that home and cannot call yourself a legitimate home owner, until the final payment is made and the title is in your personal safe.

“We’re from the government and we’re here to help.”  Famous last words;  Yes government, please save me from myself.

America rates as one of the lowest educators for financial literacy in the world.  A pigmie on a dung pile with a clay coin knows more about the value of money than many silver spoon Americans.  If we want to protect people from aggressive lending institutions, we might consider educating the youth rather than asking the aggressive lenders to police themselves.  Just saying, since revolving door regulation acts as a tool for monopolistic positioning of major corporations first and foremost, with protective regulatory structure of citizens obviously coming in second place or much further down the list of priorities.  Our monstrously oversized mortgage market and need for such robust regulation is a direct consequence of Americans not understanding how dangerous debt really is, along with government backing of private loans in the first place.  No amount of regulation will be effective at educating citizens on the dangers of debt, that has to happen in the school systems.

Bring cash or go home, people look really sad whipping out the credit card every time and rolling debt along multiple instruments.  People who’s life plan is to stay in debt may actually be retarded and simply have never been properly diagnosed.  People who think the government exists to protect us from ourselves do not know what the purpose of representative democracy is all about.  If lenders lent their own money, they’d put much more value in the appraisers services.

Mike Ford, AGA, SCREA, GAA, RAA, Realtor(r) says:

Christopher, let’s not lose sight of the fact that it was not deregulation itself that caused the financial collapse, but rather efforts to shore it up after the repeal of Glass-Stegall 1934. The method of accounting itself was modified which in turn seriously affected the reserve holding requirements of banking institutions relative to their assets.

Personally I’d like to see a return to Glass Stegall in which investment banking is completely segregated from consumer banking. Instead of interjecting clear partisan bias into the discussion, why not stick with the facts?

“Dodd-Frank” was itself named after the two biggest villains in the financial crisis; Barney Frank AND Christopher Dodd. To think that any legislation drafted and promoted by these two self serving political hacks served to provide ANY meaningful regulation is simply naïve. You need look no further than the intentionally vague and feckless provisions for reasonable and customary fees enforcement.

MOST of the burdens imposed by Dodd Frank have little to do with mortgage securities protections. Whether it should be replaced with something meaningful or not is open for discussion; but to pretend it provides any level of protection against the next meltdown is doing all a disservice.

MOST of the “history repeating itself” mortgage abuses have in fact taken place in the past eight years. Whether they will continue is anybody’s guess…

but NOTHING Trump has said or done suggests that he would weaken our banking system. Appointing people that actually know what the hell they are doing does not equate to selling out to Wall Street.

If it did, then every President (republican or democrat) that has hired a Treasury Secretary out of the ex Goldman Sachs executives pool could be argued to have sold out too.

Maybe THEY did.