Critics Decry Feds' Weak Predatory Lending Plan

The Fed proposed new sub-prime lending rules designed to protect consumers from predatory lending practices, in the future. You know, because the most important thing is to prepare for the next sub-prime meltdown. Critics were quick to lambaste the plans:

House Financial Services Committee chairman Barney Frank (D-MA): “We now have confirmation of two facts we have known for some time: one, the Federal Reserve System is not a strong advocate for consumers, and two, there is no Santa Claus. People who are surprised by the one are presumably surprised by the other.”

Center For Responsible Lending: “riddled with loopholes”

Center for Economic Policy Research: “Why couldn’t Greenspan have done this seven years ago?”

David Wyss, chief economist at Standard & Poor’s: “We always lock the barn door after the horse has gone.” Fed officials are hoping to “restore confidence in this category” of mortgages so lenders “will start making these loans again.”

Senate Banking Committee Chairman Christopher Dodd (D-CT): “a clear signal that legislation is necessary to help protect homeowners from abusive and predatory lending practices.”

(Photo: Getty)