Weekend Must ReadsPosted by on June 29, 2013
Wall Street Journal: Regulators have created a mortgage minefield
Incompatible and contradictory federal regulations -- including those in Dodd-Frank -- have created a mortgage minefield. The ultimate casualties will be the nascent housing recovery and the American home buyer.
Those who want government guarantees for mortgages see them as a path to encourage homeownership and market stability, but instead guarantees pose needless risks to homeowners and taxpayers. Government guarantees suffer from three flaws: the inability and unwillingness to price for risk, asset allocation distortions, and the politicization of lending.
Washington Examiner: CFPB advisory board riddled with questionable appointees
Multiple members of the Consumer Financial Protection Bureau’s Consumer Advisory Board have histories of financial losses, bankruptcies and insolvencies. The board provides financial and consumer advice to low-income families, including how to live within one’s budget, the need to increase personal savings, and the importance of building assets.
Los Angeles Times: Run-up in mortgage rates raises questions about housing recovery
The 30-year fixed rate home loan has jumped a full percentage point above recent record lows, raising borrowing costs and posing a threat to consumer confidence.
When the last reports came out showing that youth unemployment had reached 16.2 % in the United States, alarm bells began to be heard. Countries that score better in economic freedom, labor and business regulations, have better odds of enjoying relatively low youth unemployment.