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Todd Zywicki wrote an interesting article titled Let's Treat Borrowers Like Adults.  The title pretty much sums it up nicely.  I found a few things interesting, such as the fact that the mortgage default crisis is not only centered in a few states, it's also centered in certain areas within those states.  In other words, people took risks, the risks didn't pay off and it's causing systemic problems. 

I am a bit torn about the issues of more disclosure and more restrictions on certain types of loans.  Look, there were fraudulent mortgage brokers out there, no doubt about it.  But there were also people who didn't get that their variable rates could go up as well as down.  I'm inclined to believe those who would prey on the stupid will do so no matter what.  And non-traditional mortgages are not necessarily a bad thing.  But, still, some clear language legislation would not be remiss.  I recently read some mortgage documents and finally decided to turn the paper upside down since it would be more comprehensible that way.  Of course, lawyers hate clear language, so don't expect that to happen any time soon.

I continue to be horrified by the idea that all risk must be removed from life.  If you invest, it may not pay off.  If you buy a house to flip for a higher price, you may not get it.  Interest rates may go up, the economy may go down, hell, a volcano could blow up.  Life involves risk.  The soft edges crowd is trying to get rid of all of that in every area of life.  Well.  No.  If misrepresentation actually occurred, then, yes, the homeowner should not be forced to pay the consequences.  But if someone didn't read their mortgage, then, how shall I put this politely, too bad, so sad. 

Look, I don't own a home because my credit is too poor to qualify for a 30 year fixed rate mortgage and I'm not willing to gamble my house on a sub-prime mortgage.  It's not unfair or wrong or horrible that I don't own a home.  It's a consequence of my own life and my own actions.  I find it fascinating that the same coalitions who scream about how I have the right to control my own body think I'm too stupid to handle my own money. 

Posted by: alexthechick at 12:34 PM | Comments (3) | Add Comment
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