I heard on WCBU this morning (and read here in the Journal Star) that Dick Durbin was here, touting legislation that would help people who are facing foreclosure on their homes. It’s cleverly titled The Helping Families Save Their Homes Act.
It’s not mentioned in the article in the paper, but on the radio news, they had a sound bite of Durbin explaining one of the “reforms” he thinks is needed. He said there needed to be a cover sheet whenever you take out a mortgage that clearly identifies the amount you’re borrowing, the interest rate, your payment amount, and other critical pieces of info.
I’ve got news for Mr. Durbin: we already have that “cover sheet.” It’s called a “Truth in Lending” form, and it’s been a federal requirement since the passage of the Truth in Lending Act (TILA) of 1968. That “cover sheet” has been around for 40 years. I’ve purchased two houses in my lifetime (1994 and 2005), and both times I received this form that showed in a very easy-to-read way how much I was borrowing, what the interest rate was, how many payments I was going to have to make and how much each payment was, and how much money I was going to be paying back to the financial institution in total.
Perhaps Durbin meant that his bill will step up enforcement of TILA; some lawsuits have already been filed over violations of the Act. But the way it came across on the radio was that there was currently no requirement to disclose these basic pieces of information to borrowers, but that Durbin’s proposed legislation was going to correct that oversight.
Symbolism over substance = the Demo playbook.
Great call out of a “proposed reform” that does absolutely nothing. What is needed is more enforcement not more forms. Each time that I purchased a house (four in the last 10 years) – I had adequate notice of what my terms, rates and monthly payments would be.
While I understand that there are some unscrupulous lenders out there taking advantage of those with less understanding of the process, if the government really wants to help it needs to take a new approach rather than these feel good measures.
CJ and Peo Proud:
I’m not trying to defend Durbin — I have no position on his proposal.
But the TIL form you reference does NOT have any information in it about balloon payments or when your monthly payments go up. Only the total number of payments, total amount you are paying back over the life of the loan.
Perhaps what Durbin is proposing is a tweak or a change rather than a reform, but he was talking about something that is different, as minor as it may be to some.
And this is a man being considered by Hillary as her Vice-President running mate! Are you kidding-Dick Durbin makes Nixon look like a genius. He always has the remedies and answers after the fact, when the crisis has already hit. Has he ever proposed legislation helpful to the taxpayer before the bombshell explodes?
Durbin is one of most worthless members of a Congress full of worthless members, but my biggest problem with him is how he talks down to everybody. I sure hope the Repulicans make an serious effort to unseat him this year.
I think Wacko would like to see a McCain-Shock Republican ticket!?!? If anything…Durbin’s “reforms” are at least positive, something that cannot be said for most of our local past, present and would be politicians. Besides, I have seen enough people who are in the market for a new home and have absolutely no idea what they are doing.