The housing bill making the rounds in the Senate is unpopular with mortgage lenders and other banking groups. It isn't hard to see why. The Senate housing bill requires mortgage lenders to *gasp* consider whether the mortgage loan would actually be good for the consumer, and verify that the homebuyer could actually afford the loan.
Additionally, mortgage lenders aren't too fond of a nationwide licensing program that would impose actual standards on the mortgage industry.
Parts of the housing bill mortgage lenders like? It's obvious:
- Government refinanced loans.
- Increases to limits on loan sizes offered by Fannie Mae and Freddie Mac.
When the government intervenes to help consumers, it's too much. But, by all means, it's not too much to intervene to ask the taxpayers to foot the bill for riskier loans...
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