• 18 Dec 2012 at 1:46 PM

Should Banks Be Protected From Homeowner Lawsuits?

Here’s a little nugget that should make the handful of remaining Wall Street Occupiers’ heads explode:

As regulators complete new mortgage rules, banks are about to get a significant advantage: protection against homeowner lawsuits.

The rules are meant to help bolster the housing market. By shielding banks from potential litigation, policy makers contend that the industry will have a powerful incentive to make higher quality home loans.

But some banking and housing specialists worry that borrowers are losing a critical safeguard. Industries rarely get broad protection from consumer lawsuits, and banks would seem unlikely candidates given the range of abuses revealed during the housing bust.

Banks Seek a Shield in Mortgage Rules [DealBook]

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Comments (15)

  1. Posted by UBS Psyc PhD | December 18, 2012 at 2:48 PM

    "By removing that which zaps mice, they are more likely to find cheese."

    Makes sense to me.

  2. Posted by You, rock, shoe | December 18, 2012 at 3:01 PM

    Please, please for the love, just collate these into the next days opening bell or writeoffs. You're killing me.

  3. Posted by Guest | December 18, 2012 at 3:13 PM

    Jon, I'm really trying to give you a fair shake … but you aren't really brining anything to the table

  4. Posted by Mr. Frankenberger | December 18, 2012 at 3:21 PM

    Hold on commentariat, this wasn't horrible. "Not horrible, Jon" – feel free to use it on your resume.

  5. Posted by Guest | December 18, 2012 at 3:34 PM

    Not Horrible John. Can I use it on my resume?

  6. Posted by Bacon Is Tasty | December 18, 2012 at 3:35 PM

    "By shielding banks from potential litigation, policy makers contend that the industry will have a powerful incentive to make higher quality home loans."

    Put another way…….

    "By providing the fox with the keys to the henhouse instead of making him use the embarrassing side entrance, policy makers contend that the fox will have a powerful incentive to make nice nice with the hens."

  7. Posted by Bitchtern | December 18, 2012 at 3:40 PM

    How can this be a good idea?

  8. Posted by FKApmco | December 18, 2012 at 3:40 PM

    In the DB sitcom:
    –Jon is the ADD guy who talks in rapid bursts and tells you stuff you know/don't care about but occasionally surprises you with wit, so you keep him around.
    –Bess is the smart, funny girl that every girl wants to be and every boy wants to be with.
    –Matt is the nerdy guy who knows a lot about a lot and talks incessantly and you can't decide if he's a genius or just really freaking weird but you kinda like him which makes you wonder if you are really freaking weird too.
    PermaGuest is ………………
    NakedShort is ……………….
    etc, etc, etc….

  9. Posted by Incitatus | December 18, 2012 at 4:22 PM

    No, no, no. Look, you brine in a large bucket or a cooler. You've never had better turkey. It's a good thing.
    -M. Stewart

  10. Posted by hmm | December 18, 2012 at 4:43 PM

    Jon, stellar job once again. Is the name "Jon" Finnish for "presented without further comment"?

  11. Posted by Guesticle | December 18, 2012 at 5:28 PM

    Great value add – - write one sentence (not even), quote three paragraphs and insert a link. I now feel badly to have called the sellside useless.

  12. Posted by carlwesleyclark | December 18, 2012 at 6:15 PM

    When Stacey Hessler read this, her lesions exploded.

  13. Posted by That Guy | December 18, 2012 at 7:57 PM

    You feel bad, not badly. "I now feel badly" implies your ability to feel has been comprimised.

  14. Posted by TheDetailGuy | December 18, 2012 at 8:34 PM

    FKApmco is the Little Girl with the Big Ideas

  15. Posted by Finn | December 19, 2012 at 10:44 AM

    No, ei se kylla ole.

    Mutta olen samaa mielta etta ta "Jon" on arvoton.