mark, Well, you feel free to point out any errors or untruths in mike's post. C'mon, jump on it lad.
On Sep 25, 4:58 am, mark <[EMAIL PROTECTED]> wrote: > load of crap > > On Sep 25, 5:12 am, "mike532 [ Republicans for Obama ]" > > > > <[EMAIL PROTECTED]> wrote: > > Predatory Lenders' Partner in CrimeHow the Bush Administration Stopped > > the States From Stepping In to Help Consumers > > » > > By Eliot Spitzer > > Thursday, February 14, 2008; Page A25 > > > Several years ago, state attorneys general and others involved in > > consumer protection began to notice a marked increase in a range of > > predatory lending practices by mortgage lenders. Some were > > misrepresenting the terms of loans, making loans without regard to > > consumers' ability to repay, making loans with deceptive "teaser" > > rates that later ballooned astronomically, packing loans with > > undisclosed charges and fees, or even paying illegal kickbacks. These > > and other practices, we noticed, were having a devastating effect on > > home buyers. In addition, the widespread nature of these practices, if > > left unchecked, threatened our financial markets. > > > Even though predatory lending was becoming a national problem, the > > Bush administration looked the other way and did nothing to protect > > American homeowners. In fact, the government chose instead to align > > itself with the banks that were victimizing consumers. > > > Predatory lending was widely understood to present a looming national > > crisis. This threat was so clear that as New York attorney general, I > > joined with colleagues in the other 49 states in attempting to fill > > the void left by the federal government. Individually, and together, > > state attorneys general of both parties brought litigation or entered > > into settlements with many subprime lenders that were engaged in > > predatory lending practices. Several state legislatures, including New > > York's, enacted laws aimed at curbing such practices. > > > What did the Bush administration do in response? Did it reverse course > > and decide to take action to halt this burgeoning scourge? As > > Americans are now painfully aware, with hundreds of thousands of > > homeowners facing foreclosure and our markets reeling, the answer is a > > resounding no. > > > Not only did the Bush administration do nothing to protect consumers, > > it embarked on an aggressive and unprecedented campaign to prevent > > states from protecting their residents from the very problems to which > > the federal government was turning a blind eye. > > > Let me explain: The administration accomplished this feat through an > > obscure federal agency called the Office of the Comptroller of the > > Currency (OCC). The OCC has been in existence since the Civil War. Its > > mission is to ensure the fiscal soundness of national banks. For 140 > > years, the OCC examined the books of national banks to make sure they > > were balanced, an important but uncontroversial function. But a few > > years ago, for the first time in its history, the OCC was used as a > > tool against consumers. > > > In 2003, during the height of the predatory lending crisis, the OCC > > invoked a clause from the 1863 National Bank Act to issue formal > > opinions preempting all state predatory lending laws, thereby > > rendering them inoperative. The OCC also promulgated new rules that > > prevented states from enforcing any of their own consumer protection > > laws against national banks. The federal government's actions were so > > egregious and so unprecedented that all 50 state attorneys general, > > and all 50 state banking superintendents, actively fought the new > > rules. > > > But the unanimous opposition of the 50 states did not deter, or even > > slow, the Bush administration in its goal of protecting the banks. In > > fact, when my office opened an investigation of possible > > discrimination in mortgage lending by a number of banks, the OCC filed > > a federal lawsuit to stop the investigation. > > > Throughout our battles with the OCC and the banks, the mantra of the > > banks and their defenders was that efforts to curb predatory lending > > would deny access to credit to the very consumers the states were > > trying to protect. But the curbs we sought on predatory and unfair > > lending would have in no way jeopardized access to the legitimate > > credit market for appropriately priced loans. Instead, they would have > > stopped the scourge of predatory lending practices that have resulted > > in countless thousands of consumers losing their homes and put our > > economy in a precarious position. > > > When history tells the story of the subprime lending crisis and > > recounts its devastating effects on the lives of so many innocent > > homeowners, the Bush administration will not be judged favorably. The > > tale is still unfolding, but when the dust settles, it will be judged > > as a willing accomplice to the lenders who went to any lengths in > > their quest for profits. So willing, in fact, that it used the power > > of the federal government in an unprecedented assault on state > > legislatures, as well as on state attorneys general and anyone else on > > the side of consumers. > > > The writer is governor of New York.- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
