Legislation is now pending in the US Senate that would mandate mortgage lenders to consider the ability of the borrower to repay the loan! Similar legislation, I understand, is pending in Oregon and other states. Back in December the Federal Reserve found it necessary to issue a 'rule' that banks had to have proof of the borrowers income when granting a mortgage.
All of this frankly boggles my mind. How did we arrive at a point where it is necessary to mandate banks to use good sense. Or, how did this chief credit officer;
Get replaced by this one?