Skip to content

Predatory Borrowing

July 14, 2008

Browsing on the site of the US Department of Housing and Urban Development I couldn’t help being astonished by this sentence:

Since the Spring of 1999, HUD has been actively involved in combating predatory lending through research, regulation, consumer education and enforcement actions against lenders, appraisers, real estate brokers, and other companies and individuals that have victimized homebuyers. Read HUD-Treasury Joint Report on predatory lending.

Since 1999??? How did we get into this sub-prime mess then?? Why aren’t we talking about regulator-failure rather than market-failure? Could it be that the mess is in fact a result of the over-regulation by our esteemed department? The number of rights that are listed under “borrower’s rights” makes me think that instead of “predatory lending” we should start worrying about “predatory borrowing”….

Advertisements

From → Economics, Government

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: