« Paying for the Privilege to Pay | Main | A Twist: Predatory Borrowing! »

Mutual Finger-Pointing

posted by Angie Littwin

As Lisa Lerer wrote in The Politico last week, mortgage lenders and mortgage brokers are fingering each other as the culprit in the recent rise of home foreclosures.  In her article Lawmakers Seek to Protect Borrowers, Lerer reports on Mortgage Bank Association Chairman John Robbins’ speech at the National Press Club, where Robbins blamed brokers for steering consumers into risky subprime loans. 

The National Association of Mortgage Brokers did not take these charges lying down.  The association’s president, Harry Dinham, responded in an email that, “It is truly unfortunate that the president of the Mortgage Bankers Association has attempted to shift blame away from Wall Street, federally chartered banks, state-chartered lenders and underwriters for the subprime situation we find ourselves in today.”  The brokers are even going so far as to lobby for more regulation . . . of the mortgage lending industry, naturally.  They are seeking national standards for continuing education and criminal background checks for banks and other lenders.  Such requirements might improve the quality of brokers as well, but who’s counting?

What’s positive about this inter-industry lobbying squabble is that it means both groups are worried.  If lenders and brokers did not think that consumer-protection bills such as those introduced by Senators Charles Schumer and Jack Reed had some chance of passing, they might have shown more restraint in attacking each other. 

Finally, here’s a war where consumers benefit no matter who wins.


TrackBack URL for this entry:

Listed below are links to weblogs that reference Mutual Finger-Pointing:


The comments to this entry are closed.


Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.



  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless ([email protected]) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.