Ability to Repay... The Need for Due Diligence Documentation to Help The Lender - Reader comments at The New York Sun

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Reader comment on:
Subprime Debacle

Submitted by Prof. Samuel D. Bornstein, Oct 27, 2007 22:31

Congress is considering legislation to hold the Lender liable for loans made to borrowers that fail. The legislation is saying that the lenders must predict whether the borrowers will be able to be able to repay the loan in the future. The Lender cannot predict the future. Clearly,. it is impossible to predict changes to the borrower's income or expenses in the future... HOWEVER, it is possible to help the borrower monitor his/her ability to stay on-track and not succumb to the forces that resulted in his/her poor credit rating. It is possible to help the borrower monitor his/her financial situation by careful and specific FINANCIAL LITERACY tools that research has proven to help guide the borrower to avoid financial distress. These tools will work if we use them. My research has proven that it is possible to guide the borrower if he/she is willing to do so. This should be a requirement of all borrowers, especially if the new proposed legislation takes effect. How else can the lender uphold the new fiduciary responsibilities that this new law will impose on the lender ?

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Other reader comments on this article

Comment	By	Date
I found this article balanced. The author just reported the information and allowed the reader to come to his or... [MORE]	Jeffre Powell, Certified Mortgage Planner	Nov 11, 2007 11:00
Congress is considering legislation to hold the Lender liable for loans made to borrowers that fail. The legislation is saying...	Prof. Samuel D. Bornstein	Oct 27, 2007 22:31
Reckless lending puts financial system at peril. The same thing happened. We have market watch dog, Bank Examiners and Auditors.... [MORE]	prasad	Oct 27, 2007 04:16
Congress is considering legislatiion to hold the Lender liable for loans made to borrowers that fail. The legislation is saying... [MORE]	Prof. Samuel D. Bormstein	Oct 26, 2007 22:58
Why use the misnomer "correction" to describe the housing bear market. Housing is in a multi-year bear market that will... [MORE]	David Shulman	Oct 26, 2007 15:29
Pupils of the 7th and 8th Grades of America's Public School Systems should become proficient in the financial operation of... [MORE]	Claude Bogardus	Oct 26, 2007 10:58
Credit bureaus require individuals to obtain long-term debt like mortgages and lines of credit to improve their credit scores so... [MORE]	Jim	Oct 26, 2007 10:16
Your suggestion that mortgage originators be capitalized to hold a percentage of their loans in portfolio is excellent. World Savings... [MORE]	Laurent Baptiste	Oct 26, 2007 08:16
Boo hoo. Bad investments made by greedy businessmen on mortgages entered into by uninformed buyers who weren't qualified to begin... [MORE]	Steven Gruber	Oct 26, 2007 07:21

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