New FED proposal-New Mortgage Protections? They should have thought of that before the bloodbath

I just read this article on Yahoo news >>Fed proposes new mortgage protections. I don't see anything positive about it other than someone trying to think of a new way to save the butt.

They talk about yet another new proposal of new protections for high-cost mortgage borrowers to avoid a repeat of the loose lending standards that have put many Americans at risk of losing their homes. They also mention that this so called proposal that U.S. lenders would determine if borrowers can really afford a mortgage before making the loan and would also want borrowers to get details on their brokers' compensation as well as they would be billed on a monthly basis for annual charges property tax and insurance. Come on...is the consumer that stupid?

My question is how come they didn't think of this before? Because of unfair lending practices and false calculations many consumers were misled and it really is shame that it has to come to this. As far as reporting their brokers compensation...that isn't the important factor. The important factor is common sense. How can someone be approved for a mortgage without figuring out their debt to income ratio? Or even a simple credit check to determine that if the consumer can't even pay their $50 cell phone bill on time. How in the world can they possible afford the loan payments? I want a solution...we want a solution. But how can this be a solution? Just another way to say that some people screwed up. If they want a real solution then start by lowering rates by a significant number and relieve any consumer who was sucked into going with an adjustable teaser rate that could rise to as high as 13%. How about lowering property taxes and insurance premiums? How about doing re-evaluations of peoples present debt to income ratios and set up a program for that?

I understand they are trying to find the right solution but I personally think it is just another band-aid to cover a wound the is still bleeding profusely. The blood bath is certainly not over.....and they really need to find a better solution. Let's forget who's fault it is. It everyones fault....the lenders,the title companies,the Realtors®...and even the consumers.

How much longer do the people losing their homes have to wait.                                                           

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