By Paul Kiesel
Over the last 15 years, there have been five “avoidable events” stemming from Wall Street’s or Congress’ actions (or inaction), that led directly to the mortgage crisis.
1. Newt Gingrich and the Home Ownership and Equity Protection Act of 1994 (the latter’s goal was written to protect consumers against predatory loans, but it instead helped spark the subprime boom).
2. The “Rodash Fix” revolved around a woman’s lawsuit, Martha Rodash, against two lenders because of fee misstatements on her Truth in Lending Disclosure form. After Rodash’s victory in recouping those costs/fee, dozens of class action lawsuits were filed in similar fashion. However, Congress then passed a major amendment to the 1968 Truth in Lending Act, making certain fees, that were grounds for litigation prior, mute.
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Paul (moe?) I have read several of your blog posts and would like talk with you a little bit about mortgages and home loans. Will you please contact me at perrylmadison@gmail.com at your convenience. Thank you.