Massachusetts Regulators Rarely Acted Against Subprime Brokers And Lenders

An investigative report finds that Massachusetts regulators only acted against 3% of its licensees during the sub-prime peak, the lowest among fellow New England states, while publicly preening that it was being “aggressive.” In fact, as foreclosures rose during ’06-’08, enforcement actually dropped. Forget who watches the watchdogs, who watches?

Massachusetts State Regulators Lag Far Behind Other New England States In Sanctioning Mortgage Professionals [New England Center for Investigative Reporting]

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  1. grapedog says:

    full of massholes…

  2. H3ion says:

    And this is news? WTH, Madoff operated for years after the regulators were put on notice. The financial industry screams about regulation but if someone isn’t looking over their shoulders, their hands will be even deeper in your pocket.

    • TuxthePenguin says:

      Its news because there were a vast group out there crying that what we needed was more regulation and regulators to keep the greedy evil capitalists in line. So what happens when the regulators you had weren’t doing their job? What’s the answer then?

      More regulators?

      In my mind, yes. Only you take those regulators who were negligent in their jobs, ban them from working in any financial industry ever again (in either a commercial or regulatory position) and hire new ones.

      • Conformist138 says:

        We assume the options are more or less… how about we just make people do their jobs. Can’t point at people not regulating as proof regulations don’t work. Gotta first get people off their asses. Personally, I’m broke. I’ll yell at bankers all damn day long if they wanna pay me more than I get now.

  3. dragonfire81 says:

    They obviously got something in the form of money or trips or luxury goods or sports tickets or whatever to ignore what was happening…

  4. oldwiz65 says:

    The lenders were smart enough to make quiet contributions of money, hookers, sports tickets, and drugs to the regulators. After all, the regulators need to enjoy life too. They probably have also been promised jobs with the lenders after they leave the regulatory agencies. It’s nothing unusual. You don’t actually expect regulatory agencies to go after the groups they are supposed to regulate do you?

    • wrjohnston91283 says:

      You’re giving Massachusetts regulaters too much credit. They weren’t paid off, they were just lazy or unable to the do the job.

  5. Datruth says:

    So typical…a Republican state like Massachusetts goes easy on sub-prime brokers. That’s so in keeping with the narrative. Oh wait…Massachusetts is about as far from Republican as you can get, with few exceptions. There goes that narrative…

  6. EverCynicalTHX says:

    Yet Freddie and Fannie remain, encouraging bad loans and led by a handful of Democrats..where’s THAT story?

    • hansolo247 says:

      I know. They are still doing interest only mortgages, and have downright easy down payment and credit requirements.

      And the government guarantees almost every loan they make. Housing Bubble 2 is going to be a b*tch. And it’ll drain the government’s cash, too…there won’t be any private banking losses on this one as this administration has proven to be a better friend to the banks than the last one.

  7. EverCynicalTHX says:

    Why are my postings being delayed?

    Are everyone’s being held for moderation and I missed some site change or just those by us more conservative members?

    • DeepHurting says:

      Maybe your tinfoil skullcap is interfering with your wireless internet connection.

      • EverCynicalTHX says:

        I tend to be conservative but I’m also a consumer advocate and how been a member here long before I created an official posting account almost a year ago.

        Until this week my posts were added automatically…period.

        The two posts I did last night were put into a que and released quite a while later.

        Either Consumerist has changed their system to delay posts or I’m being singled out and moderated as a conservative voice on this liberal leaning website. I may contact Consumer Reports to get their feedback.

        This has nothing to do with tinfoil and everything to do with free speech. If certain members posts are restricted because their message may not agree with the moderating establishment here but other liberal posters can run roughshod at will I’d like to know how that is determined.

        BTW – you can click my name and read all my posts here, no profanity and nothing more there than other posters on that elicit a political viewpoint to what can sometimes be seen as one sided stories.

        My concern is that if my posts don’t fit the editors or moderators wishes – let’s get it out in the open and change the name to liberalconsumerists.com or something to that effect.

        • Conformist138 says:

          Wow, you are beyond special. A TON of us have whined about the commenting system. There are times that clicking submit does NOTHING for minutes and then suddenly, bam, two or three copies appear. When more people are online and commenting, it happens. You are not being discriminated against as a conservative, there are plenty of those here. They just don’t claim persecution on political grounds when there’s a delay.

  8. Big Mama Pain says:

    I’m kind of surprised by this. Mass was out forward compared to any other state in legislation to prevent scummy subprime loan company practices, even shutting several of them down five years ago. They kind of saw what was about to happen before it did; sad.

  9. AllanG54 says:

    Well since Barney Frank, the chairman of the banking committee is from Mass. I wonder if he told enforcement there to lay off. There could be more than meets the eye here.

  10. EverCynicalTHX says:

    Delayed again..see…