News

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]

15 comments
(hidden for your protection)
Show all comments

15 Responses to “Should Banks Be Protected From Homeowner Lawsuits?”

  1. UBS Psyc PhD says:

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

    Makes sense to me.

    • You, rock, shoe says:

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

  2. Guest says:

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

  3. Mr. Frankenberger says:

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

  4. Bacon Is Tasty says:

    "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."

  5. Bitchtern says:

    How can this be a good idea?

  6. FKApmco says:

    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….

  7. hmm says:

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

  8. Guesticle says:

    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.

  9. carlwesleyclark says:

    When Stacey Hessler read this, her lesions exploded.

Our Sites

  • Above the Law
  • How Appealing
  • ATL Redline
  • Breaking Defense
  • Breaking Energy
  • Breaking Gov
  • Dealbreaker
  • Fashonista
  •