Senator Dodd is at it again

8 08 2007

He wants to bail out the hedge funds and investors who made bad loans to house buyers and speculators.  I don’t support a bailout of any sort for the housing market.  I do support changing regulations on loans to protect the public.  I believe that most people who took out loans that they cannot afford new what they were doing and were speculating that the house would go up in value and they could resell it for a profit.

I just wrote to Senator Dodd again, here is my letter to him:

Senator Dodd,

You are pushing for higher conforming loan limits and I disagree with this action.  I don’t believe that the limits are the problem.  The problem, in my view, is that home prices are too high.  Reckless investment and speculation in housing has caused the problems.
Raising the conforming limits would only continue the problems.  Reforming loan origination so that people do not buy beyond their means to pay would be helpful.  Changing lending standards to create a better informed consumer is always good.
I feel for the people who are losing their homes, everything that can be done for them should be, everything up to but not including the government taking responsibility for their loans.  I do not believe that the government should step in and guarantee loans that were made under false pretenses.  Working with the banks to alter the loans to save as many households as possible I do support.
I hope I was my writing is clear and understandable, if you have any questions please feel free to call me.





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