Well by now I would have to say that most of us know that several Bank CEO’s where called to Capital Hill to answer questions about received TARP funds. As expected the CEO’s had little to say while they took their turn in the hot seat. Maxine Waters has been a person that I have been hard on in the past but today she asked some great questions only to get false responses. Today I have to say way to go Ms. Waters. Keep it up.
I did hear yet again how Mortgage Brokers bare no responsibility when structuring a mortgage. Why is this no being covered by the Media? Helloooo Media, please wake up. This was a complete lie in every sense of the word. Clearly these CEO’s are so far disconnected that they do not know the verb age of their own company Broker Mortgage agreements. Does anyone in the Media, Congress, Finance Committee or even one of the CEO’s want to see one of these agreements? I personally have copies of most banks Broker Mortgage agreements and the statement that Broker have no risk is unbelievable. It is yet another attempt to deflect blame from the real problem.
These CEO’s did not even know there was a problem with the economy until the fourth quater of 2008?….Please. The large banks started dropping loan programs in the first quarter of 2008. Someone in the banks knew there was a problem. The problem was and still is clear. Greed! On all levels caused this problem.
I am happy to see that the Fed’s are finally working toward correcting the guidelines. Stated income loans due need to come back but only for self-employed borrowers. Without Stated Loan programs we put the backbone of American Small Business, the largest source of job providers, as risk. The tax credits for purchasing a home is another good, and proven, step to correct the foreclosure problem. The Fed’s do need to be careful that they do not step too far. Let the banks do their part to fix this mess that they too caused and must share in the blame.