I note that the Federal Reserve has stepped in to the mortgage market, and tried to work at elaborating that legal cause of action so wished-for by the trial lawyers: the offense of lending money.
I'm not kidding.
In the bulletin, they also purport to remove the borrower's ability to finance the mortgage broker without the mortgage broker paying it back (that is, folks the meaning of the phrase "adequate disclosure"), and the spread that lenders are allowed to make over Treasury before these regulations kick in.
Probable result? Many mortgage brokers will simply decline to represent clients who would qualify for subprime loans, and a product which was used well by 80% of those who used it will be unavailable to anyone in that market. Home ownership, supported by the capacity to finance, will take another blow. This, of course, in the name of "protecting" those people from seeking the American dream of home ownership. Silly them. The upside for me is that money originally destined for the consumer market might end up propping up the commercial end, where I work.