Lenders To Keep A Part of Every Loan

I think this is a great idea.  According to MarketWatch, “House Financial Services Committee Chairman Barney Frank, D-Mass., told reporters at a press conference that he is considering legislation that would require mortgage lenders to keep a stake in every loan that is securitized. “

 

Also, this may be impossible but ““Rep. Tom Price, R-Ga., plans to introduce legislation that would prohibit the use of government funds to modify mortgages for individuals that “lied about their income on their mortgage application.” Price’s measure would also prohibit government funding to any lender that failed to follow proper underwriting standards.”

http://www.marketwatch.com/news/story/story.aspx?guid=%7BAABB222B%2D4D22%2D4E51%2D9C76%2D6B3D1E2ABF2B%7D&siteid=rss