Dodd Bill Encourages Risky Loans

Friday, 30 Apr 2010 11:08 AM

By Grover Norquist

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
From the ATR website.

According to Bret Baier at Fox News, Eric Stein, senior vice president for the Center for Responsible Lending, helped secure risky loans for low income individuals who would otherwise not qualify.

Why is this bad?

The government gave incentives for banks and lending institutions to seek out these individuals who would normally be rejected during the loan process due to low income or bad credit. Institutions, backed by the government (taxpayer dollars) were in a win-win position.

If they gave the loan, and it is paid back with interest, the lending institutions keep the money — win. If the loan defaults and is not paid back, the government uses taxpayer dollars to cover the bank's loss — win.

These large institutions win, thanks to this fail-safe logic by Democrats, and taxpayer lose.

You would think this lesson had been learned by now. However, this risky, government-backed behavior that got us into this mess to begin with — it's back in Title 12 of Dodd's bill, page 1398.

ATR is calling this "Fannie Mae 2.0." Not only does this title encourage this behavior by backing the bank's losses, it actually uses taxpayer money to give to financial institutions to allow them to advertise and actively seek out these high risk, lower income individuals.

What happened to Eric Stein? He is next in line to head the proposed Consumer Financial Protection Bureau that Sen. Dodd's bill will create. Well he certainly seems qualified . . .

Now which party is really coddling Wall Street?


© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Women Start Tuning Out NFL for Abuse-Case Mistakes

Friday, 24 Oct 2014 07:04 AM

Some women are starting to tune out the National Football League as it deals with the fallout from its mishandling of do . . .

Bo Dietl: Stop-and-Frisk Would Have Averted Hatchet Attack

Friday, 24 Oct 2014 06:44 AM

Former New York Police detective Bo Dietl says the ending of the department's stop-and-frisk policy is partly to blame f . . .

Expert: 'Unusual' That Ebola Medical Staff Is Not Quarantined

Thursday, 23 Oct 2014 22:43 PM

Infectious disease expert Dr. Robert Lahita says he is surprised medical personnel who have worked directly with Ebola p . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved