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”….