Why This Real Estate Bust Is Different

tvsterling at 21:23 2009-11-09 said:

There obviously needs to be reform at the level of the deal itself as well as the bundling & securitizing that comes after. Due diligence from the lender has to be rock solid. I would suggest one responsible banker for each loan on record & PERSONALLY LIABLE for his or her actions (no cheap dodging). And how about forfeiture of any commission or fee paid if the loan defaults? That would put some iron in the spine of any shiftless loan officer. From the applicant; notarization of submitted documents would end document falsifying (at least the signature itself) & requirements for any submitted business record to be checked by a third party accountant. Rigor is what is lacking. Laws to curb the frenzy of the bubbles is what's lacking. If prudence & morality won't work then legislation needs to be used. Permalink