Here's something I wrote the other day

Regulate, Regulate, Regulate

Watching the Senate hearings today, all I heard was to create regulations to prevent the mortgage meltdown from occurring again. When have government regulations really helped a problem?
Government needs to look at the simple solution, the free market solution.
Mortgage brokers (include the investment houses that package and resell the mortgages in this too), get their fees up front. Once the paperwork is signed they get their money and are off the hook. They don’t care about the borrower’s ability to pay; they got their money and are out of the picture.
Solution, on any mortgage sold to Fannie or Freddie they get 30 or 50 percent upfront, and the remainder over some period of the loan, even have a way to deduct from payouts when a mortgage they wrote (or packaged) goes bad. I’m not going to work out the details here, but put THEIR interests along with the homeowner AND the people buying the mortgage.
Processors may complain about the overhead, but it will probably be no worse than complying with the added regulations.
Don’t regulate, use a free market solution that creates its own solution, and effectively self policies an industry.

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KLK, MCSE

1990 500SL

I was always taught to respect my elders.
I don't have to respect too many people anymore.