I do think something needs to be done about the education of the borrower though. For example, in plain black and white, the math that shows them each year what their payment is going to be, clearly stated, with an area for them to sign off on. If there is a policy that comes from a lawsuit that does that, that would be good.
Or how about stated income loans go away? I have a friend in the mortgage biz, and I remember him telling me about the Vons checker and her Trucker husband that finally got a home using a stated income loan (for $500K no less) – how is it that someone gave them that kind of money? That’s just so irresponsible.
I have personally never had a mortgage, but I understand the volume of paperwork that comes with your loan, and the way it’s written, is very difficult to read. It needs to be clearer. The people at the top cannot take advantage of the people at the bottom. Conversely, the people at the bottom cannot lie their way to the top. I guess that’s what really disgusts me: that all this happened in the first place.
I thought we were all more enlightened than this.
