Dodd-Frank Provides For Only One Flavor of Mortgages -- Just Like the Old Soviet Union
By Robert Stowe England July 22, 2010 "Like the Saturday Night Live lunch counter from the late 1970s that, regardless of what the customers reasonably requested, offered only cheeseburgers, chips, and Pepsi, the Mortgage Reform and Anti-Predatory Lending Act (the Mortgage Reform Act) would essentially mandate that all flavors of mortgage loans besides 'plain vanilla' may disappear from the menu," write Krstie D. Kully and Laurence E. Platt at K&L Gates LLP law firm. Their assessment appears in a newsletter released by the law firm July 8, that can be read at this link: http://www.klgates.com/newsstand/Detail.aspx?publication=6528 This section of massive Frank-Dodd financial services bill targets originators of mortgages that are not plain vanilla. These companies and institutions are targeted for "punishment through enhanced monetary damages, defense to foreclosure and risk retention requirements," Kully and Platt state. "Only time will tell whethe...